[CES 2024] Samsung Electronics "Confident as a Leader in the AI Era through Memory and Foundry Convergence"

The Importance of Memory Semiconductors Grows in the AI Era
Not Only HBM but Various Memories Also Benefit
"Market Rebound Certain If No Unexpected Events Occur"

"Recently, with the surge in demand for memory used in AI accelerators such as High Bandwidth Memory (HBM), a new business model combining foundry (semiconductor contract manufacturing) is emerging."

Han Jin-man, Vice President and Head of Samsung Electronics' Device Solutions America (DSA), said this on the 11th (local time) at the Encore Hotel in Las Vegas, USA, during a meeting with reporters. He mentioned that they are discussing with customers a completely different approach from traditional memory by utilizing foundry processes in the manufacturing of HBM to customize products.

Samsung Electronics DS Division Americas General Manager (DSA), Vice President Han Jin-man, is answering questions from reporters on the 11th (local time) at the Encore Hotel in Las Vegas, USA. / Photo by Samsung Electronics

Vice President Han emphasized, "Samsung Electronics is the only company where decision-makers from both memory and foundry can come together at one table to purchase solutions," adding, "Although the impact may not be felt immediately, I am confident that in 2 to 3 years, Samsung Electronics will become a strong player in the generative AI era through the convergence of foundry and memory."

The Importance and Demand for Various Memories Grow Rapidly Due to AI Effects

Samsung Electronics expects the demand for HBM to increase rapidly this year as well, following last year, driven by AI effects. The company has announced plans to increase capital expenditures (CAPEX) for HBM facilities by more than 2.5 times compared to last year. As AI is used comprehensively, the importance of memory is rising with increased demand not only for HBM but also for various products such as Compute Express Link (CXL).

Vice President Han explained, "Leading graphics processing unit (GPU) and central processing unit (CPU) companies such as NVIDIA, AMD, and Intel in the U.S. release new accelerators every year," adding, "To maximize accelerator performance, memory performance must be supported, so discussions on the importance of memory architecture and the need for new memory architectures have begun in earnest."

Exterior view of the Samsung Electronics DS Division semiconductor exhibition hall at CES 2024 held in Las Vegas, USA / Photo by Samsung Electronics

He continued, "Not only HBM, low-power double data rate (LPDDR) DRAM, and CXL but also various memory ideas currently in early discussions with customers are expected to materialize and the related markets to blossom within 2 to 3 years."

"Market Rebound This Year Is Certain... Focus on the U.S. Server Market"

Regarding the semiconductor industry outlook for this year, he said, "Assuming no unexpected global events, a market rebound seems certain." Vice President Han explained, "There are rebound signals from the Chinese market, and the U.S. market is also expected to rebound significantly starting this year," adding, "Customer orders continue to increase."

Particularly, in the North American market, attention is focused on whether the general server market will recover due to increased demand for AI servers. Vice President Han noted, "The American market is where technological innovation happens, so we consider the server market the most important," and added, "The key question is whether the growth of the AI server market will drive the general server market and whether Samsung Electronics is prepared when that happens."

He further stated, "We plan to continuously enhance product competitiveness and invest in facilities to transition to leading-edge products," adding, "We want to capture more than 50% market share in the U.S. server market, so we need to work hard." He also added, "We expect demand to exceed supply by 2025, so this year will be the first year to prepare for that era."

Samsung Electronics Shinebolt (HBM3E) image / [Image source=Samsung Electronics]

Regarding the foundry plant under construction in Taylor, Texas, U.S., Vice President Han said, "The factory construction is progressing as planned," and explained, "We are negotiating with the U.S. government and customers regarding the mass production timeline, so we will be able to share specific plans soon."

Samsung’s Private Booth Revealed to Media for the First Time

Samsung Electronics set up a private exhibition space at the Encore Hotel in line with the world's largest electronics and IT exhibition, 'CES 2024,' held from the 9th to the 12th in Las Vegas, and unveiled the booth to the media for the first time on this day. The exhibition hall was organized into five application areas: ▲Server ▲PC & Graphics ▲Mobile ▲Automotive ▲Lifestyle, welcoming visitors.

At this venue, Samsung Electronics introduced key products with increasing demand due to AI effects, such as the 5th generation HBM product Shinebolt (HBM3E) and 12nm-class 32Gb Double Data Rate (DDR)5. Vice President Han said, "We will lead the paradigm shift by timely developing various cutting-edge memory solutions optimized for the AI era."