Full-Fledged HBM4 Duopoly Expected
Samsung Aims for a Turnaround with 1c Process-Based HBM4
Micron Joins the Fray, Intensifying HBM4 Supply Competition
HBM4 Market Expansion Anticipated Amid Surging AI Demand
Samsung Electronics is on the verge of passing Nvidia's quality test for supplying sixth-generation High Bandwidth Memory (HBM4). Internally, there is a sense that the company has essentially completed its technological preparations. Meanwhile, SK Hynix announced that it had already concluded supply negotiations with its clients ahead of Samsung, signaling the start of a full-fledged competition between the two companies.
On November 4, a semiconductor industry insider stated, "Samsung Electronics is making smooth progress in preparing for the HBM4 quality test, and there is a prevailing sentiment that approval will be granted soon," adding, "Next year, the market is expected to be dominated by both Samsung Electronics and SK Hynix." Recently, even within Samsung, there have been remarks that "the atmosphere has changed significantly compared to before." Previously, the delivery of HBM3E was delayed due to issues with heat generation and power consumption, but it is now expected that HBM4 will pass quality tests at major clients such as Nvidia without major issues.
Samsung Electronics has recently accelerated preparations for mass production of HBM4. During its third-quarter earnings conference call, Samsung Electronics announced that it had completed HBM4 development and shipped samples to all clients. Nvidia also specified its "HBM3E and HBM4 supply partnership" with Samsung Electronics in a press release for the Asia-Pacific Economic Cooperation (APEC) CEO Summit on October 31.
Earlier, in March, SK Hynix, which announced the shipment of HBM4 samples before Samsung Electronics, stated during its third-quarter conference call that it plans to begin HBM4 shipments in the fourth quarter of this year and has already finalized supply agreements for next year with major clients. Having completed preparations for mass production just six months after shipping samples, SK Hynix is said to have gained a favorable position in client quality tests. In a press release on November 3, SK Hynix emphasized, "Through our industry-leading HBM technology, we are already meeting the highest specifications required by our clients," and added, "Next year, we plan to significantly expand our sales."
Samsung Electronics is determined to overtake SK Hynix, which currently leads the HBM market, and plans to turn the tables starting next year. Notably, Samsung Electronics aims to gain an edge by developing HBM4 using 1c DRAM (sixth-generation 10-nanometer class), a process node more advanced than its competitors. Recently, Samsung Electronics also awarded 481.39 million won worth of company shares as incentives to 30 employees who contributed to the development of HBM4 core technologies. Industry sources say that these incentives were given to the 1c DRAM development team for achieving their development goals.
If both companies pass Nvidia's quality tests without issues, they are expected to begin supplying HBM4 between the fourth quarter of this year and early next year. Nvidia plans to complete the final quality tests for HBM4, which will be installed in its next-generation artificial intelligence (AI) accelerator "Rubin" series, by the first quarter of next year. With Micron also planning to begin mass production and shipment of HBM4 in the second quarter of next year, the HBM4 boom is expected to continue for the foreseeable future. This is likely to be a positive factor for both Samsung Electronics and SK Hynix, as it coincides with the explosive growth in demand for AI semiconductors. Nvidia CEO Jensen Huang emphasized the importance of both companies, stating, "Both companies' capabilities are essential for Nvidia's growth."
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