Korean media reported that Samsung Electronics Co. is raising the production costs of the "HBM3E" of the high-voltage wide memory to compete for the order of NVIDIA (Nvidia Corp.).

Tom’s Hardware and Wccftech quoted ZDNet Korea reports on July 31 that Samsung High-level recently stated at the second quarter financial phone meeting that the supply and demand status of HBM3E is about to change, mainly because the rate of supply increases exceeds the demand growth rate. "We predict this will impact market prices."

Samsung also pointed out that "accounting the rising trend of general DRAM prices in the second half of the year, it is expected that the profit gap between HBM3E and general DRAM will shrink quickly."

Samsung's HBM business has made some progress recently, especially after being adopted by AMD, but the company has not yet entered the NVIDIA supply chain and cannot compete with SK Hynix.

However, since Samsung owns one of the largest HBM production lines in the industry, it is expected that HBM pricing may tilt in the direction that is favorable to Samsung, and the company may launch a lower-cost HBM3E. This means that if it is either the competitors follow the price reduction, Samsung can gain a larger market share through this.

Extended reading: HBM Price is coming? Samsung disputes supply NVIDIA GB300 HBM price war will open next year? SK Hynix's stock price drags down Micron