[Chip Talk] Korea's Top Two Semiconductor Giants Face Off Over HBM4: "Dominating Market Share" vs. "Superior Performance"

"Stable Yields" SK Hynix vs. "Speed" Samsung
A Fierce Showdown Looms Over Nvidia Supply
Some Analysts Say "Securing Volume Matters More Than Delivery Timing"

The competition between SK Hynix and Samsung Electronics, the two leading domestic memory manufacturers, is intensifying over the 6th-generation High Bandwidth Memory (HBM4), which is considered the most critical battleground in this year’s semiconductor industry. SK Hynix is seeking to maintain its leadership by leveraging its proven supply stability in the market, while Samsung Electronics is emphasizing its data processing speed as its key strength. As HBM is the main driver of performance for both companies, they are expected to make every effort to secure market dominance.

This year marks the full-scale opening of the HBM4 market. According to the semiconductor industry on January 31, SK Hynix and Samsung Electronics have essentially completed preparations for mass production of HBM4. SK Hynix has agreed to supply about 70% of Nvidia’s HBM4 demand this year and has already entered the mass production phase in line with customer schedules. Samsung Electronics plans to officially deliver HBM4 to major global clients, including Nvidia and AMD in the United States, starting next month.

SK Hynix Emphasizes Mass Production Capability: "Performance Achieved Even with Existing 1b Process"

SK Hynix, which established the industry’s first HBM4 mass production system in September last year, highlights its proven stability in the market as its strength.

Kim Kitae, Executive Vice President in charge of HBM Sales and Marketing at SK Hynix, said during a conference call on January 29, "We will mass-produce HBM4 using the fifth-generation 10-nanometer (1b) DRAM, which was recognized for its performance in HBM3E," adding, "Achieving the required performance for customers with the existing 1b process applied to current products is a significant technological achievement."

This means that SK Hynix possesses the technological capability to meet next-generation HBM4 performance requirements using the 1b-based products already proven for stable production in HBM3E, thereby reducing concerns about defect rates.

In fact, SK Hynix is reported to have secured about two-thirds of the HBM4 volume for Nvidia’s next-generation AI platform, "Vera Rubin." The company is expected to maintain its top position in the 6th-generation HBM market, backed by long-standing partnerships with major global clients and high yields proven through large-scale mass production.

Samsung Emphasizes Technology: "Highest Speed... First Supply to Nvidia"

Samsung Electronics is also showing formidable momentum, chasing SK Hynix with its technological prowess and speed. Samsung Electronics’ HBM4 is reported to achieve data processing speeds of up to 11Gbps, surpassing the JEDEC international semiconductor standard of 8Gbps.

The company has also unveiled its roadmap for the next-generation product, HBM4E. Samsung Electronics plans to provide samples to clients in the middle of this year and begin mass production of customized products in the second half of the year. The company’s unusual disclosure of its next-generation HBM mass production schedule is interpreted as a public display of confidence in its technological competitiveness.

Notably, Samsung is expected to gain an advantageous position in volume allocation and negotiation by being the first in the industry to officially supply HBM4 to Nvidia next month.

The Outcome Hinges on Volume Securing and Flexibility

However, up to the HBM4 generation, SK Hynix is generally considered to have taken the lead in the market by securing larger volumes. Lee Jonghwan, Professor of System Semiconductor Engineering at Sangmyung University, stated, "Even if Samsung Electronics delivers first, SK Hynix, which has secured more volume, is in a more advantageous position," adding, "SK Hynix is highly likely to maintain its competitive edge this year."

Some analysts also point out that the winner in the semiconductor competition will ultimately be determined by who can bring customer-tailored AI chips to market faster. Professor Lee emphasized, "The key variables that will determine the outcome are increasing the yield (pass rate) of HBM and general-purpose DRAM, and quickly securing big tech companies other than Nvidia."