Samsung Electronics is shifting all additional production of DDR5 memory modules and SSDs to outsourced partners to free up internal capacity for more advanced HBM packaging.

The company has instructed its outsourced semiconductor assembly and test partners to accelerate capacity expansions for DDR5 modules and SSDs as part of this shift.

The reallocation aims to reserve in-house back-end space and equipment for high-bandwidth memory production, addressing scarce capacity for AI-related semiconductors.

Packaging plants in Cheonan and Onyang are being realigned to support advanced packaging lines, including HBM, to relieve bottlenecks in Samsung’s AI-focused offerings.

Industry sources say the move reflects a deliberate pivot to outsourced capacity to maximize efficiency of back-end resources.

Samsung is directing capacity growth for conventional memory modules toward external firms, rather than expanding its own back-end lines.

DDR5 module assembly is simpler than HBM packaging, which underpins outsourcing of conventional memory while focusing internal efforts on advanced technologies.