Concentrating on high-margin cutting-edge DRAM business... Samsung and SK Hynix reorganizing old models

Samsung Electronics and SK Hynix are showing signs of concentrating on the high-margin cutting-edge DRAM memory business, reducing production of older products amid intensifying low-price competition due to the entry of Chinese memory companies.
Instead, it is resolved with the intention of capturing profitability through cutting-edge DRAM production.
Following the older DRAM DDR (Double Data Rate)4 used in semiconductors, the company is phasing out production of its third-generation high-bandwidth memory "HBM2E" products.
The company plans to focus on HBM3E and 6th generation HBM4. During a conference call in January this year, Samsung Electronics said, "We will accelerate the ramp-up of cutting-edge processes to HBM, DDR5, LPDDR5,
"We are actively increasing the proportion of high value-added products such as GDDR7," he said. "In the case of DDR4 and LPDDR4, the sales ratio, which was in the low 30% range in 2024, will be in the single digits this year.
This means that the company will not produce older products such as HBM2 and DDR4, but will take steps to streamline its business.
SK Hynix's DRAM sales share increased from 74% in the previous quarter to 80% in the first quarter. Thanks to its profitable DRAM products, its operating profit margin reached an astounding 42%.
It is understood that the proportion of HBM in total DRAM sales has increased to 50%. SK Hynix has also revealed plans to expand its cutting-edge DRAM process.
In the second quarter, more than half of the total HBM3E shipments are expected to be sold as HBM3E12-stage. It is expected that 12-stage products will account for the majority of HBM3E sales this year.
It is estimated that 12-stage has a price premium of more than 10% on a capacity basis compared to 8-stage HBM3E. This also plays an important role in profitability at the product mix level.
An industry source said, "It is important to switch to advanced DRAM processes even at the market leadership level," and explained, "This will also help in terms of profitability."