Samsung will outsource all of its DRAM manufacturing and redeploy in-house fabrication capacity to high-bandwidth memory production, inside sources say.

According to those sources, the company has pressed partners to finish their DDR5 production lines ahead of schedule and is preparing investments in new outsourced production lines. The reported objective is to free in-house capacity for HBM chips.

Inside sources described HBM as Samsung's best-performing business lately and said demand for the product has grown amid the AI-related surge for supporting hardware.

The same sources warned the transition could further tighten the DDR5 market, which they described as already squeezed.

Partners and near-term steps

Samsung has been in talks with Dreamtech in India, Hanyang Digitech in Vietnam and SFA Semicon in the Philippines, the reporting said. Discussions reportedly cover accelerating DDR5 line completions and creating new outsourced production capacity so Samsung can shift its internal fabs toward HBM.