Samsung is concerned about a decline in memory demand after 2028.

Samsung Electronics – Memory Leader with New Development Plan

*The largest flash memory manufacturer Samsung remains at the top of the global market, but in the HBM (High Bandwidth Memory) segment leadership has shifted to SK hynix.*

After many years of steady growth, the company is moving to a new strategy, taking into account the upcoming demand downturn after the “AI boom” (the period of heightened memory consumption for artificial intelligence).

1. Why Samsung is preparing for a downturn
- Past experience has shown that excessive investment in capacity expansion during growth leads to overproduction and losses when demand falls.
- Management estimates that demand will start to decline as early as 2028.

Therefore the company’s goal is: minimize the risk of overproduction while maximizing profits from the current AI boom.

2. Action Plan
What Planned How Implemented Expansion of HBM Production Invest in new lines, but with the upcoming downturn in mind. Adoption of advanced process technologies Deploy 10‑nm (1c) and newer technologies at new fabs. Risk Management Simultaneously develop production of other memory types to avoid shortages.
- New HBM lines are already under construction in Pyeongtaek.
- At Hwaseong sites, the company focuses on the latest process technologies and preparation for the release of 6th‑generation DRAM.

3. Competitive Landscape
Company Core Areas Samsung HBM, 10‑nm DRAM (1c), NAND module expansion SK hynix Limited capacity for new lines but active development of promising DRAM types Kioxia / YMTC Actively ramping up NAND capacities

4. New Initiatives and Government Support
- In South Korea, under government auspices in Yongin, a giant memory complex is being built that can serve both companies.
The first phase will be completed by 2028, after which expansion will begin.
- Micron Technology is boosting DRAM and HBM production in the US, Taiwan, and Singapore.

5. What Has Changed Since the AI Boom
- The market has become more unpredictable: cycles are shorter and less clear-cut.
- Memory manufacturers must revise investment strategies faster than before.
- Samsung and SK hynix previously did not anticipate such rapid demand growth and now urgently mobilize funds for expansion.

Conclusion:

Samsung Electronics, remaining the largest memory manufacturer, is adjusting its plans: invest in HBM and new technologies while keeping an eye on the impending downturn in 2028. At the same time, the company supports production of other memory types to maintain a balance between demand and supply amid the changing AI market.