samsung accelerates hbm4 development to regain ai chip market edge

2024-12-26 nvidia

Seoul, Thursday, 26 December 2024.
Samsung is gearing up to bolster its position in the AI chip sector by advancing to HBM4 memory production. This move is essential as it faces competition from rivals like Micron and SK Hynix. The company has started ordering equipment for 1c DRAM, which will be used to manufacture HBM4 memory. This is a strategic step to catch up after delays with HBM3E memory, which failed to meet Nvidia’s performance standards. Samsung’s efforts are crucial as it aims to stabilize its supply chain and increase competitiveness in the growing AI market. The development of HBM4 memory, which uses more advanced technology than its competitors’ 1b DRAM, could be pivotal. The construction of its production line at the Pyeongtaek campus is set for completion by mid-2025. This initiative marks a significant push to overcome past setbacks and capitalize on the high demand for AI chip technology.

Market dynamics and competitive landscape

Samsung’s push into HBM4 comes at a critical time in the AI memory market. While Samsung holds the position of world’s largest memory chip manufacturer [1], it has fallen behind competitors in AI-specific memory. Micron is set to receive US$6.165 billion in CHIPS Act funding [2] and aims for a 20% market share by 2025 [2]. SK Hynix has already secured a major HBM supply agreement with Broadcom [5] and is progressing with its HBM4 tape-out process [1].

Technical advantages and timeline

Samsung’s strategic decision to use 1c DRAM for HBM4 production represents a technological leap ahead of competitors, who are utilizing 1b DRAM [1]. The company’s new production line at the Pyeongtaek campus will be operational by mid-2025 [1]. This timeline aligns with market expectations, as Micron has announced plans for HBM4 mass production in 2026 [3], suggesting Samsung could potentially gain an early market advantage.

Government support and market implications

The competitive landscape is being shaped by significant government support. Samsung is set to receive US$4.745 billion in US subsidies [3], strengthening its manufacturing capabilities. The US government’s recent designation of major cloud service providers as ‘gatekeepers’ for global AI chip distribution [6] adds another layer of complexity to the market dynamics. These developments could influence Samsung’s ability to navigate the AI chip supply chain.

Bronnen

Samsung HBM4