Samsung Electronics Receives Positive Feedback for HBM4 Chip

Samsung Electronics has garnered significant praise from customers regarding its next-generation high-bandwidth memory (HBM) chips, known as HBM4. Co-CEO and head of the chip division, Jun Young-hyun, noted in a New Year address that customers expressed their enthusiasm by stating, "Samsung is back." This positive feedback coincided with a surge in Samsung Electronics' shares, which rose by as much as 3.8% during morning trading, outperforming the KOSPI index that increased by 1.1%.

In October, Samsung announced it was in advanced discussions to supply its HBM4 chips to Nvidia, a prominent player in the artificial intelligence (AI) sector in the United States. This move is part of Samsung's strategy to enhance its competitive position against rivals, including SK Hynix, another South Korean semiconductor manufacturer. Jun reiterated the importance of continued improvement in their competitive edge, stating, "Customers have even stated that 'Samsung is back.'"

In addition to advancements in HBM4 technology, Jun discussed the company's foundry business, which focuses on manufacturing chips designed by external clients. He indicated that recent agreements with major global firms have positioned the foundry sector for significant growth. Notably, in July, Samsung Electronics secured a deal valued at $16.5 billion with Tesla, further establishing its presence in the semiconductor market.

However, concerns were expressed by co-CEO TM Roh, who also oversees the device experience division, which includes mobile phones, televisions, and home appliances. He warned that the year 2026 may present increased uncertainty and risks, particularly due to escalating component prices and global tariff barriers. "To maintain our competitive advantage in any situation, we will reinforce our core competitiveness through proactive supply chain diversification and optimisation of global operations to address issues such as component sourcing and pricing, as well as global tariff risks," Roh stated in his address.

Samsung Electronics continues to navigate a complex landscape in the semiconductor industry while aiming to solidify its position as a leader in high-bandwidth memory solutions and AI technologies. The positive reception of HBM4 chips and strategic partnerships suggest a promising outlook for the company as it adapts to evolving market demands.