Samsung refocuses memory strategy: ramp 1b DDR5 DRAM, trim HBM

Samsung is reshaping its memory strategy with a clear focus on profitability. The company is ramping up conventional DRAM output and temporarily dialing back investment in HBM memory. With DDR5 module prices up by roughly 60% over the past two months, the timing is hard to ignore: chasing margin where demand is hottest offers a swift way to lift earnings.

According to South Korean media, the plan is to expand production of fifth‑generation (1b) DRAM by migrating older manufacturing lines to newer process nodes and reallocating capacity that previously served NAND memory. This approach lets the company lift volumes faster without heavy capital spending.

By contrast, the HBM business remains in the red: low yields for HBM4 chips and the absence of a finalized supply agreement with NVIDIA are slowing progress. Samsung intends to keep only the minimum necessary HBM output plan for next year and does not view this category as a profit driver for now.

Management has made it clear that next year’s target is maximum profitability. Insiders say Han Jinman will take over as head of the memory division, a specialist in strategic pricing who is expected to sharpen the company’s edge in the rapidly expanding DRAM market.