Samsung Electronics has announced plans to commence the mass production of HBM3e, its fifth-generation High Bandwidth Memory (HBM) chips, with an aggressive target to escalate its contribution to total revenue from over 10% in the current quarter to 60% by the last quarter of this year. Kim Jaejune, head of storage sales and marketing at Samsung, has stated that the company will supply the advanced chips to several clients, although specific names have not been disclosed.

The rapid growth forecast by Samsung suggests a strong possibility of supplying to top Artificial Intelligence (AI) accelerator producers globally, which require HBM to function. Notably, NVIDIA, a key account pursued by both Samsung and its competitor Micron, may be among the clients. Reports indicate that Samsung has already secured approval from NVIDIA for at least some of its AI storage chips.

Samsung projects a 3.5-fold increase in HBM sales in the second half of this year compared to the first half and has plans to double its storage supply by 2025. This move is set against the backdrop of a surge in profitability in Samsung's semiconductor division, spurred by the AI trend. On July 31, Samsung Electronics reported a sixfold increase in net profit for the second quarter, reaching 9.64 trillion won (approximately $69.6 billion), exceeding analysts' average expectations of 7.97 trillion won.

This significant leap in net income marks the fastest growth for Samsung Electronics since 2010. The company had previously announced a 15-fold increase in preliminary operating profit and a 23% rise in revenue, representing the largest increase in sales since 2021. The semiconductor division's operating profit reached 6.45 trillion won ($4.7 billion), marking the second consecutive quarter of profitability after four quarters of losses, driven by the rise in storage prices and robust demand.

With the AI-driven semiconductor boom showing no signs of slowing down, Samsung is poised to further solidify its position in the market with the HBM3e chips, which are expected to play a crucial role in the company's future growth and profitability.