[Chiptalk] TSMC Holding the Fate of Samsung and SK HBM Simultaneously... 'Base Die' Rising as a Power Player

TSMC "Direct Production of HBM4 Base Die"
Flood of Cooperation Inquiries from Semiconductor Companies
Advanced Market Strategy Securing New 'Revenue Source'
Preparing to Utilize 12nm or 5nm Process
Samsung Also Hints at Cooperation Following SK

Taiwan's TSMC, which dominates the global foundry (semiconductor contract manufacturing) market, is expanding its influence by securing a new revenue source through the production of the 'base (logic) die,' a core component of high-bandwidth memory (HBM). This move is expected to directly impact the strategies of Samsung Electronics and SK Hynix, who are fiercely competing in the HBM market, drawing increased attention from the domestic semiconductor industry.

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According to foreign media and industry sources on the 30th, after TSMC announced its blueprint to directly manufacture the base die starting from the 6th generation HBM, HBM4, at the 'European Technology Symposium' held in Amsterdam, Netherlands, last May, semiconductor companies have been placing a flood of orders.

The base die is a key component forming the foundational structure of HBM. It supports the stacking of DRAM chips called 'core dies' on top and completes the HBM by vertically connecting them using Through-Silicon Via (TSV) technology. Previously, the base die was considered the domain of memory manufacturers and was often produced together with DRAM during HBM production. Until now, TSMC has operated by receiving DRAM and base dies provided by customers and assembling them on substrates along with graphics processing units (GPUs). This method was maintained up to the 5th generation HBM3E, but with this announcement, there is a possibility of transitioning to a system where the base die is separately 'custom-made' starting from HBM4.

TSMC's Sophisticated Market Strategy

TSMC's decision to manufacture the base die directly appears to be significantly influenced by the rapidly improving performance of HBM. HBM is advancing to the next generation at an unprecedented pace, with mass production of 16-layer and soon 20-layer or more products on the horizon. As the number of DRAM layers in HBM increases, the base die requires precision to support these layers and achieve high bandwidth. Recently, the standards demanded of the base die in the market have risen sharply. The base die process must become more refined to keep pace with HBM's development speed.

This has led to potential production capacity limits for companies. While the base die could be self-produced up to the 5th generation HBM3E, industry experts analyze that from HBM4 onward, it will be difficult to manufacture without partnering with companies possessing advanced foundry processes. TSMC has recognized this trend and introduced a sophisticated market strategy. It can be seen as having planted its flag early on the base die production demand expected from HBM4. For the time being, TSMC is expected to monopolize the market for base dies without competitors, enjoying significant influence. It is also reported that TSMC is moving swiftly to establish a system for producing base dies for HBM4 by adjusting related processes. Initially, they plan to manufacture using 12-nanometer (nm; 1 nanometer is one billionth of a meter) or 5-nanometer processes, but this may vary depending on customer requests and collaboration methods.

Conceptual Diagram of the 'Base Die' Production for HBM4 Revealed by TSMC

Following SK, Samsung Also Signals "Possible Cooperation"

TSMC is expected to simultaneously hold the fate of Samsung Electronics and SK Hynix, who are about to enter the HBM4 competition. SK Hynix has already decided to entrust the base die process of the 6th generation HBM, HBM4, to TSMC, and Samsung Electronics recently hinted at a similar decision.

The core background behind Samsung Electronics' first indication of possible cooperation with TSMC regarding next-generation HBM production on October 31 is the base die. Kim Jae-jun, Vice President of the Memory Business Division, stated during the Q3 earnings conference call this year, "Regarding the base die of custom HBM, we will respond flexibly to foundry partners regardless of internal or external relations." This is interpreted as a willingness not to exclude cooperation with companies like TSMC to secure high-quality base dies. Kyung Hee-kwon, a research fellow at the Korea Institute for Industrial Economics & Trade, analyzed, "It is likely not a cooperation where TSMC produces the entire HBM, but rather where TSMC handles the base die and parts requiring precise front-end packaging processes. Next-generation HBM requires many wires below the base die and more delicate processes, making such cooperation inevitable."

Earlier in May, SK Hynix also established a cooperation plan with TSMC for mass production of next-generation HBM, entrusting TSMC with the front-end process (FEOL) of the base die, TSV formation, and back-end wiring process (BEOL) of HBM4. The base die is expected to be produced using TSMC's 7-nanometer process. This decision was also made according to customer requirements. Subsequent processes such as wafer testing, HBM assembly, and KGSD (Known Good Stacked Die) testing will be conducted at SK Hynix's back-end factories.