Samsung Convenes Global Strategy Meeting: Focuses on HBM Supply Strategy and Long-Term Agreements

Samsung Electronics recently held a three-day global strategy meeting. According to industry sources cited by Korean media, the meeting primarily focused on in-depth discussions regarding the expansion of High Bandwidth Memory (HBM) sales and the Long-Term Agreement (LTA) strategy.

The Device Solutions (DS) division of Samsung Electronics held this strategy meeting on the 18th, personally chaired by Jun Young-hyun, the head of the DS division. The meeting centered on HBM supply plans tailored for different customers, covering not only the current fifth-generation HBM3E but also outlining supply strategies for the sixth-generation HBM4 and the seventh-generation HBM4E.

As a regular meeting held annually in June and December, the core purpose of the Global Strategy Meeting is to review the first-half performance and formulate sales strategies for the second half. Against the backdrop of surging AI demand causing tight memory supplies, strengthening the HBM business became the absolute focus of this year's meeting.

In terms of technological deployment, Samsung Electronics is continuously consolidating its leading position: it commenced mass production and shipments of HBM4 in February of this year and delivered samples of 12-high stacked HBM4E to customers globally last month, marking an industry first. It is expected that HBM4 sales will account for more than half of total HBM sales starting in the third quarter.

Beyond products and technology, Samsung Electronics also conducted a comprehensive review of the LTA strategy it has been advancing with major tech giants since the beginning of this year. During the first-quarter earnings conference call, Samsung Electronics revealed that it had "already signed LTAs with certain customers," aiming to enhance business stability and demand visibility. Samsung emphasized that even considering current demand levels, the supply-demand situation in 2027 will be even tighter than this year.

Unlike existing short-term supply contracts, LTAs are highly binding and can enhance business stability and transparency. Currently, Samsung is seeking to sign multi-year supply contracts within its existing supply capacity and has already finalized agreements with some customers. Samsung stated that it will flexibly manage its investment scale based on customers' medium- to long-term demands and actively respond to market changes.