samsung-to-ramp-up-advanced-chip-output-after-memory-sales-hit-record-high

Samsung Electronics has reported a record-breaking quarter for its memory chip business, powered by surging demand tied to global AI infrastructure expansion. In response, the company plans to accelerate production of its most advanced high-bandwidth memory (HBM) chips and significantly increase capital investment next year to stay ahead of demand.

The memory division’s revenue reached a new high, driven by recovering chip prices and stronger order volumes. With demand forecast to outstrip supply even under its expansion plan, Samsung says it will expand mass production of HBM3E and begin scaling up HBM4 output. Executives suggest customers are already placing orders for next-generation chips, and the company is reviewing further capacity expansion.

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Samsung’s turnaround comes at a time when it has lagged rivals in the AI chip race. But with conventional memory demand rebounding, the company sees an opportunity to regain footing. Shares responded positively to the announcement, gaining around 5 % in trading, as investors welcomed signals of improved performance and strategic direction.

Analysts note the focus on HBM chips is critical because these components are central to AI compute infrastructure — from accelerators to data-center memory stacks. The decision to fast-track production of these chips reflects both optimism and urgency: even with added investment, Samsung expects customer demand next year will exceed its planned output.

As it scales, Samsung must balance speed with quality, manage cost inflation, and navigate competition from rivals already entrenched in the HBM market. How well it executes this chip push could determine whether it’s catching up — or falling further behind.