Samsung's 'Last Chance': Lee Jae-yong Pushes HBM4 as Make-or-Break Moment [KFT Topic]

[Korea Financial Times, Gwak Horyung] Samsung Electronics is set to restore its pride as a "memory powerhouse" after completing preparations for mass production of High Bandwidth Memory (HBM) 4.

According to industry sources on the 27th, Samsung Electronics recently passed final quality tests from NVIDIA and AMD for HBM4 and is expected to begin full-scale mass production next month. NVIDIA plans to showcase its next-generation AI accelerator "Vera Rubin," the first to feature HBM4, at its GTC 2026 AI conference in California on March 16 (U.S. time), where Samsung Electronics' HBM4 is also expected to make its official debut.

Having lost leadership to SK Hynix and Micron in HBM3E, Samsung Electronics has made restoring its "overwhelming technological superiority" a top priority.

Samsung Electronics preemptively applied 10-nanometer (nm) class 1c (6th generation) DRAM—one generation ahead of competitors—to the DRAM stacked in HBM4.

Additionally, the company enhanced performance by applying its foundry division's 4nm process to the logic die, which serves as the brain at the bottom of the stack.

The operating speed of Samsung Electronics' 12-stack HBM4, unveiled at the Semiconductor Exhibition (SEDEX) in October last year, is "over 11Gbps." This exceeds not only the international standard speed of 8Gbps but also NVIDIA's elevated requirements (10-11Gbps).

Jun Young-hyun, Vice Chairman and Head of Samsung Electronics' Device Solutions Division, expressed confidence in his New Year's address, stating, "HBM4 is receiving recognition from customers that 'Samsung is back,'" and assured there are no issues with yield optimization.

Rising Performance Expectations

Samsung Electronics is expected to share more detailed information about HBM4 at its fourth quarter 2025 earnings call scheduled for 10 a.m. on the 29th.

Attention is particularly focused as it will be held almost simultaneously with SK Hynix's earnings call at 9 a.m. the same day.

Samsung Electronics previously announced preliminary results last month, reporting fourth-quarter revenue of KRW 93 trillion and operating profit of KRW 20 trillion, up 22.7% and 208.2% respectively from a year earlier. Annual operating profit for 2025 stands at KRW 43.53 trillion.


This year's profit is expected to grow three to four times compared to last year, benefiting from strong DRAM prices driven by the AI era from early in the year. According to financial information provider FnGuide, Samsung Electronics' estimated operating profit for 2026 is around KRW 121.6 trillion.
Despite this figure being revised upward by 64% in the past three months, securities firms continue to raise their projections. Operating profit estimates for this year published in corporate analysis reports last week include Mirae Asset Securities (KRW 125.5 trillion), Yuanta Securities (KRW 132.9 trillion), KB Securities (KRW 145 trillion), and Kiwoom Securities (KRW 170 trillion). Park Yu-ak, research fellow at Kiwoom Securities, who provided the most aggressive estimate, stated, "We raised our price increase forecast to 106% for DRAM and 91% for NAND flash," adding, "The surge in commodity DRAM prices will also favorably impact HBM4 price negotiations."

"No Time for Complacency"...Emphasizing Geopolitical Crisis

As such rosy forecasts poured in, Lee Jae-yong, Chairman of Samsung Electronics, has been rallying internal sentiment, stating, "This is not the time to be complacent just because the numbers have improved somewhat."

According to business circles, Samsung recently shared a video containing Chairman Lee's message at a seminar for approximately 2,000 executives, stating "(This is) the last opportunity to restore competitiveness."

The video reportedly also included a message from the late Chairman Lee Kun-hee mentioning the "sandwich crisis theory." In 2007, at a Korea Employers Federation (now Korea Enterprises Federation) chairman's meeting, the late Chairman Lee stated, "With China catching up and Japan staying ahead, the Korean economy is in a sandwich situation."

Indeed, according to foreign media reports, U.S. Commerce Secretary Howard Lutnick warned major semiconductor-producing countries earlier this month, stating, "Memory semiconductor manufacturers have two choices: pay 100% tariffs or build factories in the United States."

Chairman Lee's message is interpreted as meaning that amid intensifying technology hegemony wars and geopolitical pressure, the company must not become complacent with performance improvements driven merely by price surges, but must restore unrivaled technological prowess to break through the crisis head-on.

Gwak Horyung (horr@fntimes.com)