Samsung Electronics is reportedly preparing to outsource production of conventional DDR5 memory modules to free up in-house capacity for higher-value HBM chips, according to reports from South Korea.
The shift comes amid surging demand for high-bandwidth memory driven by the AI revolution, with HBM chips now fetching top dollar in the market, the reports say.
HBM demand drives Samsung’s capacity shift
Reports cited in South Korea say Samsung plans to outsource all additional production of conventional DDR memory modules so that its internal manufacturing capacity can be redirected toward high-value products such as HBM.
Sources add that, rather than expanding in-house production of conventional DDR5 memory modules used in PCs, servers and laptops, the company is increasing allocations to outsourcing partners.
Samsung has reportedly asked those partners to increase investment in upgrading production lines and to implement their capacity expansions ahead of schedule, the reports state.
