[Chip Talk] Samsung Electronics Completes HBM4 Mass Production Preparations... Heralding the Dawn of the 'Super Supplier' Era

Samsung and SK Hynix Enter Full-Scale HBM Competition
Focus on Passing Nvidia's Quality Tests
HBM Suppliers' Performance and Supply Volume Are Key
From "Who Is First" to "How Much and How Well"

With the mass production of sixth-generation high-bandwidth memory (HBM4) imminent, Samsung Electronics and SK Hynix are expected to once again compete for leadership in the next-generation artificial intelligence (AI) semiconductor market.

As both companies are anticipated to begin supplying HBM4 around the same time, industry analysts note that the ability to stably supply large volumes-rather than just performance or speed-has emerged as the key factor for competitiveness.

According to industry sources on December 4, Samsung Electronics recently completed its internal quality test (PRA) for HBM4, which is interpreted as the completion of product development. Rival SK Hynix supplied HBM4 samples to Nvidia earlier in March and is now preparing for mass production. In its third-quarter conference call, SK Hynix announced that it had already finalized supply agreements with major customers for next year.

With both companies conducting quality tests for product supply to major customers such as Nvidia, the launch of HBM4 supply is imminent. If both companies pass the quality tests without issue, HBM4 supply could begin as early as this month or early next year. Nvidia plans to complete the final quality testing of HBM4, which will be used in its next-generation AI accelerator "Rubin" series, by the first quarter of next year.

The industry believes that the surge in demand for AI-powered accelerators and servers has ushered in a new era where HBM suppliers have become the dominant players. With demand so strong that even GPU manufacturers and cloud companies are struggling to secure timely supplies, the ability to produce HBM quickly, in large quantities, and with stability is now directly linked to corporate competitiveness. For now, the supply volume, production capacity, and performance that Samsung Electronics and SK Hynix can offer are expected to determine not only the pricing and launch schedules of customer products but also their market capitalization. Nvidia CEO Jensen Huang, during his visit to Korea in October, mentioned both Samsung Electronics and SK Hynix, stating, "Both companies are essential for Nvidia's growth."

Accordingly, the determining factors for gaining an edge over competitors are expected to be performance and supply volume, rather than supply speed. While SK Hynix had a virtual monopoly on HBM3E (fifth-generation), both companies are projected to start supplying HBM4 at similar times. Samsung Electronics aims to surpass its competitors by developing HBM4 using its advanced 1c DRAM (sixth-generation 10nm-class process) and enhancing base die performance with a 4nm logic process.

Meanwhile, SK Hynix, which holds a majority share in the global market, has introduced its advanced MR-MUF process and applied fifth-generation 10nm-class DRAM technology. Samsung Electronics, on the other hand, is emphasizing its relatively higher production capacity as a competitive advantage. Recently, Samsung Electronics has been increasing its HBM sales, narrowing the DRAM market share gap with SK Hynix.

An industry insider commented, "Given the overwhelming demand, who supplies first is not as important as it was with HBM3E. Since all three companies-Samsung Electronics, SK Hynix, and Micron-will supply around the same time, the competitiveness of each company will be determined by performance and supply volume."