Samsung Electronics Co. (OTC:SSNLF) is negotiating a sharply higher price for its next-generation High Bandwidth Memory 4 (HBM4) AI memory chip.
This improvement could lift semiconductor profits but ripple into higher smartphone costs.
Local media reported that Samsung is seeking to price its HBM4 at about $700 per unit, roughly 20%–30% higher than the prior generation, reflecting greater pricing leverage in a still-scarce AI memory market.
HBM4 Production Milestone And Market Positioning
The move comes after Samsung said it started mass production of HBM4 and shipped commercial products to customers, as it works to regain ground after initially trailing SK Hynix in early AI memory momentum.
Saxo Markets’ Charu Chanana told Bloomberg the pricing talk highlights renewed “pricing power,” signaling Samsung believes it has regained leverage at the premium end of the AI memory market.
Samsung’s higher HBM pricing strategy aims to maximize profitability as broader memory prices rise, with DRAM, an HBM input, also climbing sharply.
That strengthens Samsung’s bargaining position not only in HBM but also in general-purpose DRAM for smartphones and PCs, letting the company adjust production across both categories to optimize returns.
Potential Impact On Galaxy S26 Smartphone Pricing
But the same memory inflation raises Samsung’s own smartphone bill of materials. Reports said Samsung is considering a 100,000–200,000 won price increase for Galaxy S26 models versus the prior generation, with the Galaxy S26 Ultra 512GB potentially exceeding 2 million won.
Samsung reportedly plans to offset some costs by using Exynos 2600 in domestic Galaxy S26 models while emphasizing new AI features.
The reported HBM4 pricing lands as Nvidia Corp. (NASDAQ:NVDA), one of Samsung’s key customers, gets additional demand visibility after Meta Platforms Inc. (NASDAQ:META) agreed to deploy “millions” of Nvidia AI processors over the next few years.
Samsung’s HBM4 is also expected to be used in Nvidia’s next-generation “Vera Rubin” AI chip platform, Bloomberg reported on Thursday, citing Chosun Ilbo newspaper.
Supply Chain Dynamics And Competitive Landscape
SemiAnalysis reported that Nvidia plans to source HBM4 almost entirely from SK Hynix and Samsung, cutting Micron Technology Inc. (NASDAQ:MU) out of the mix.
Analysts expect SK Hynix to provide about 70% of the supply and Samsung roughly 30%, according to the Chosun Daily.
Industry watchers said Micron fell behind because it struggled to meet Nvidia’s stricter technical targets.
TrendForce and other sources noted Nvidia raised HBM4 data-transfer speed goals above 11 gigabits per second last year.
Reportedly, SK Hynix set HBM4 pricing for Nvidia in the mid-$500 range last August, but may move to match Samsung’s higher level.
Bloomberg Intelligence analyst Masahiro Wakasugi wrote that a $700 price could imply 50%–60% operating profit margins for Samsung’s HBM4, and suggested the Samsung–SK Hynix pricing gap could narrow in 2026 if Samsung supplies more HBM to Nvidia at premium pricing.
Reports also indicated Samsung’s plans to begin HBM4 manufacturing by February and prepare initial shipments after passing qualification tests for both Nvidia and Advanced Micro Devices, Inc. (NASDAQ:AMD).
Photo by Arcansel via Shutterstock
Recent Comments