[Concall] Samsung Presents AI Memory Roadmap... "Leading the Industry in HBM Technology and Capacity" (Comprehensive)

Samsung Electronics Emphasizes AI Memory Competitiveness in Conference Call
Strengthening Production Cuts Focused on NAND Flash and Legacy Products
"Will Showcase Technology Overcoming Thickness Limits in HBM4"

Samsung Electronics has concretized its new technology development roadmap to respond to the increasing demand for high-capacity and high-performance memory in the AI era and to strengthen its market dominance. The company announced plans to launch various DRAM products, including next-generation High Bandwidth Memory (HBM), Double Data Rate (DDR)5, and Low Latency Wide I/O (LLW). While reducing production mainly of low-priced products and NAND flash, which is experiencing sluggish inventory depletion compared to DRAM, Samsung is focusing on a high-value-added product portfolio to improve profitability.

Samsung Electronics revealed these plans during a conference call held after announcing its Q2 earnings on the 27th. The call was flooded with questions related to the AI memory business, which has attracted significant attention inside and outside the semiconductor industry. Samsung devoted more time than usual to explaining its technological capabilities and product launch plans. This effort was made as AI memory demand has emerged as a key factor in improving performance.

Leading the Industry in HBM Technology and Capacity: "Next Year’s Capacity Will Be Double This Year’s"

Kim Jae-jun, Vice President of Samsung Electronics’ Memory Business Division, stated, "With the recent growth of generative AI, the demand for high-performance memory supporting large-scale data processing, especially HBM, is expected to increase rapidly. We anticipate steep demand growth this year and next." He added, "In line with this growth, we are expanding our HBM business. We have started shipping next-generation HBM3 16GB and 24GB products to major AI system-on-chip (SoC) and cloud companies, following HBM2 and HBM2E." The successor to HBM3, HBM3P, is scheduled for release in the second half of the year, focusing on 24GB products.

Samsung is also focusing on technology development to enhance HBM competitiveness. The company is currently applying its independently developed TC-NCF (Thermocompression Non-Conductive Film) method to HBM3, improving quality and mass production capabilities. According to Samsung, the NCF material helps address chip warpage issues that can occur due to the characteristics of HBM products. For the upcoming sixth-generation HBM product, HBM4, which stacks multiple DRAM chips, Samsung is developing technology to eliminate the space between chips to overcome thickness constraints.

Expanding production capacity is essential for targeting the HBM market. Vice President Kim explained, "We possess the industry's best capacity and have secured customer demand exceeding the mid-1 billion Gb level, which is double last year's capacity. We are working to increase supply by improving productivity in preparation for additional orders in the second half." He added, "We plan to continuously expand supply capacity to meet the rapidly increasing future demand. Next year’s HBM capacity will be at least twice this year’s through expansion investments."

Beyond HBM, Many 'AI Response Weapons'... Multiple DRAM Launches Announced

Samsung Electronics presented DDR5 DRAM as another weapon to respond to AI memory demand. The company plans to launch 32Gb DDR5 DRAM based on advanced process technology within the year to support high-performance computing. Following the release of a 16Gb DDR5 product at the 12nm class in May, Samsung intends to continuously introduce high-performance products to the market. The recently launched GDDR7 DRAM product for graphics applications is also said to be capable of responding to the AI era.

The market trend shifting from generative AI to on-device AI also presents an opportunity to expand business. Vice President Kim said, "While generative AI is developing based on servers, on-device AI technology, which implements AI directly on devices for efficiency and security reasons, is expanding. We are developing LLW DRAM specialized for on-device AI." He added, "LLW offers low power consumption and high bandwidth compared to existing LPDDR, enabling real-time processing of device data. Mass production is targeted by the end of 2024."

Samsung is also developing DRAM that combines memory and logic for AI data centers. Vice President Kim noted, "This DRAM is more economical and can implement larger capacity than SRAM. We have completed defining detailed product specifications through collaboration with major central processing unit (CPU) customers and aim to provide differentiated solutions based on this." Additionally, a module called 'LPCAM,' based on low-power DDR (LPDDR) mainly used in mobile devices, will enter mass production in the first half of next year. In the storage sector, Samsung plans to launch a 64-terabyte (TB) server SSD based on triple-level cell (TLC) technology early next year to meet high-capacity demand.

Samsung Display: "Competitor Theft and Infringement at a Serious Level"

To target the automotive semiconductor market, which has emerged as one of the three major application areas alongside PC and mobile, Samsung is focusing on introducing products with enhanced reliability and stability. Recently, the company has been developing technology to improve power consumption of automotive memory products. Vice President Kim said, "We expect the automotive sector to become a bigger business opportunity than PC applications by the early 2030s, and we are continuously strengthening our business competitiveness." He added, "Having been in the automotive semiconductor business for eight years without supply issues, we have built trust with major customers and have entered all major Tier 1 OEM companies. We will continue to strengthen our leadership in the automotive market."

Samsung is increasing the effect of production cuts on relatively low-profit NAND and legacy memory products. The company explained that while both DRAM and NAND production will be further adjusted, the reduction in NAND production will be more significant. Vice President Kim predicted, "In this case, demand will improve mainly in PC and mobile sectors where inventory adjustments have progressed in the second half." He also said, "From the supply side, some market changes will occur in the second half due to expanded production cuts. DRAM products applying special processes such as Through Silicon Via (TSV) and High-K Metal Gate (HKMG) are expected to see increased demand, leading to price rebounds ahead of other products."

Meanwhile, Samsung Electronics announced during the conference call that it plans to expand its premium TV lineup by launching extra-large OLED TVs of 83 inches and 77 inches. Samsung Display, which participated in the call, revealed that it acquired the U.S. microdisplay company Imagine to expand its extended reality (XR) business and plans to increase cooperation to introduce innovative products. Regarding the ongoing patent infringement lawsuit against Chinese competitor BOE, Samsung Display stated that the theft and infringement of its intellectual property are at a serious level and warned of a strong response.

This content was produced with the assistance of AI translation services.