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Samsung prioritizes DRAM and HBM4 capacity at P3 and P4 fabs amid rising AI NAND demand
Thursday, February 5, 2026 at 05:53 AM
Samsung is reportedly prioritizing CapEx for HBM4 and 1c nm DRAM production over NAND expansion, with cleanroom space at the P3 and P4 fabs dedicated primarily to DRAM. On the demand side, AI infrastructure projects are expected to consume 10-20% of the total NAND supply between 2025 and 2026, while enterprise QLC NAND adoption is accelerating to replace nearline HDDs.
Context
Samsung is reallocating its production strategy at the P3 and P4 fabs to prioritize HBM4 and 1c nm DRAM, leaving limited capacity for NAND expansion. This shift comes as technical challenges in vertical stacking and QLC adoption slow down traditional bit growth. For investors, this signifies a strategic pivot toward high-margin AI components over commodity storage, even as enterprise demand for high-capacity solid-state drives begins to aggressively replace traditional hard drives.
The supply-side constraint coincides with a massive demand spike driven by AI infrastructure. Projects like the Vera Rubin architecture are projected to consume between 10% and 20% of the total global NAND supply through 2025 and 2026. This structural shift suggests the semiconductor market is entering an AI-fueled super-cycle rather than a standard inventory fluctuation, positioning Samsung to capitalize on premium memory tiers while potentially tightening the broader NAND market.
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