Samsung’s HBM4 to Hit Mass Production This Month, Smaller Share Than SK Hynix

Samsung’s 6th-gen high-bandwidth memory, HBM4, is gearing up to power next-gen AI systems. The company will begin mass production this month and has secured orders from Nvidia. However, its share of orders is quite lower than that of its arch-rival, SK Hynix, which is disappointing.

Samsung’s HBM4 is now ready to boost next-gen AI performance

According to a report from Yonhap News Agency, Samsung’s HBM4 will go into mass production phase later this month. “Samsung, which has the world’s largest production capacity and the broadest product lineup, has demonstrated a recovery in its technological competitiveness by becoming the first to mass-produce the highest-performing HBM4,” said an industry source to the outlet.

The report also says that Samsung has passed Nvidia’s quality certification for HBM4. The company plans to begin shipping the chips to Nvidia as early as next week (after the Lunar New Year holiday) for use in the next-gen AI accelerator, Vera Rubin. Samsung’s HBM4 operates at up to 11.7 gigabits per second (Gb/s), the industry’s highest performance.

However, Samsung’s allocated share of Nvidia’s total HBM4 orders is in the mid-20% range. SK Hynix secured a share in mid-50% range, while Micron remains in 20% range. This is likely because Nvidia pre-allocated orders, even before suppliers completed quality testing. Pre-allocation was important because making HBM4 takes more than six months, and Nvidia wanted a stable supply.

Moreover, Samsung’s current production capacity may have also influenced Nvidia’s decision for allocation. The company’s monthly output of 1c DRAM, a key component of HBM4, is roughly 70,000 units. This is around 10% of the firm’s total DRAM capacity. While production capacity will increase to 190,000 units per month (thanks to the expansion of Pyeongtaek Plant 4), it may take up to a year to reach that level.

Samsung is also using more advanced HBM4 technology than its rivals. The chip use a 4nm process for the base die, and 10nm 6th-generation (1c) DRAM for the core die. In comparison, competitors use slightly older 10nm 5th-generation (1b) DRAM on a 12nm foundry. However, the 1c DRAM is not yet as mature as the 1b DRAM. Hopefully, as yields improve in the coming years, Samsung’s move will pay off.