Samsung shifts DDR5 and SSD production to third parties to prioritize HBM manufacturing

Samsung Electronics is reallocating its internal manufacturing capacity to focus on high-demand, advanced High Bandwidth Memory (HBM) and AI-related semiconductor packaging. To accommodate this shift, the company is outsourcing the production of conventional memory modules, including DDR5 and SSDs, to external partners. This strategic move addresses the limited back-end capacity at Samsung's Cheonan and Onyang plants, which are being repurposed for complex HBM assembly. Partners such as Dreamtech, Hanyang Digitech, and SFA Semicon are scaling up their operations to handle the increased volume of conventional memory production. By delegating less complex assembly tasks, Samsung aims to optimize its resources for more lucrative enterprise and AI-focused products. This transition mirrors a similar strategy previously adopted by Micron, as major memory manufacturers increasingly prioritize high-margin AI hardware over standard consumer and enterprise memory components.