Samsung Electronics has overtaken SK Hynix in excessive bandwidth reminiscence (HBM) manufacturing capability to turn out to be the business chief. This achievement stems from a preemptive conversion of DRAM manufacturing strains to HBM strains and a spotlight on yield stabilization. Pushed by explosive synthetic intelligence (AI) semiconductor demand, the manufacturing competitors between the 2 corporations is predicted to accentuate additional subsequent yr.
In response to business sources on Dec. 1, Samsung Electronics’ HBM manufacturing quantity has just lately expanded to 170,000 wafers per 30 days based mostly on wafer enter, surpassing SK Hynix’s 160,000 wafers. Samsung Electronics had beforehand maintained round 150,000 wafers per 30 days. The corporate leveraged its overwhelming manufacturing capability and technological prowess to surpass its rival.
Samsung Electronics’ return to first place represents the fruit of bone-cutting innovation. Analysts recommend this resulted from the alignment of general-purpose DRAM line conversion to HBM and know-how development methods which have continued because the second half of final yr. On the middle of this effort is Govt Vice Chairman Jeon Younger-hyun, who assumed the function of Samsung Electronics DS Division head in Might final yr. Jeon made a daring transfer by establishing an HBM growth workforce simply two months after taking workplace in July final yr and reorganizing the Superior Packaging (AVP) enterprise workforce underneath his direct management.
To resolve persistent heating points, present DRAM was redesigned, and the outcomes led to the profitable provide of fifth technology HBM3E to NVIDIA in September this yr. Presently, next-generation HBM4 samples have been delivered to shopper corporations, with significant high quality certification outcomes anticipated quickly. Lately, Samsung additionally achieved vital success in supplying HBM in massive portions to Google Tensor Processing Models (TPUs), which threaten NVIDIA’s graphics processing items (GPUs).
The monetary funding business had persistently analyzed that SK Hynix, beforehand thought of a competitor, led Samsung Electronics in provide quantity. Nevertheless, it was belatedly confirmed that Samsung Electronics considerably elevated HBM provide quantity within the second half, delivering portions equal to SK Hynix.
Samsung Electronics is accelerating facility investments to broaden manufacturing capability whereas sustaining momentum. The corporate is changing or increasing some DRAM manufacturing strains (P3·P4) on the Pyeongtaek campus into cutting-edge 1c DRAM (10-nanometer class sixth technology) strains for HBM manufacturing. That is anticipated to straight impression fourth-quarter efficiency enchancment. Final month, the corporate determined to proceed with structural development for Pyeongtaek Plant 5 (P5), accelerating response to the reminiscence tremendous cycle.
SK Hynix can also be persevering with an aggressive manufacturing enhance strategy. The important thing to competitors between the 2 corporations facilities on HBM line conversion velocity and new manufacturing facility development. Whereas Samsung Electronics employs a technique of quickly changing present huge general-purpose (legacy) reminiscence strains to HBM to pour out quantity, SK Hynix focuses on early operation of latest fabs. SK Hynix is elevating the operation price of the Icheon M16 line whereas hastening fast operation of the Cheongju M15X manufacturing facility.
Business analysts count on each Samsung Electronics and SK Hynix to determine month-to-month 200,000 wafer HBM manufacturing programs subsequent yr. Nevertheless, periodic benefits are anticipated to alternate. Within the first half of subsequent yr, Samsung Electronics, with higher line conversion capability, might acquire benefit by way of quantity offensive, however observations recommend SK Hynix is more likely to rise once more as HBM manufacturing chief round summer season 2026 when M15X begins full operation.
Past easy manufacturing quantity competitors, the know-how supremacy battle seems to be quickly shifting to next-generation product HBM4 (sixth technology). Beginning with HBM4, the so-called customized HBM period will start in earnest as boundaries between reminiscence and system semiconductors dissolve. SK Hynix has finalized plans to kind a one workforce alliance with Taiwan’s TSMC and make the most of TSMC’s logic processes for base die manufacturing processes, that are core parts of HBM4. This technique goals to beat technical limitations by way of collaboration with the highest foundry firm.
Samsung Electronics has performed its trump card with a turnkey (built-in order) answer that maximizes the strengths of an built-in system producer (IDM) possessing reminiscence, foundry, and packaging capabilities. The calculation is that finishing all the things from design to manufacturing and packaging in a single manufacturing facility can present benefits in course of effectivity and worth competitiveness.
The ripple results HBM will carry when it comes to profitability are additionally anticipated to be appreciable. HBM is a excessive value-added product priced 3 to five instances increased than normal DRAM. The proportion of HBM in whole DRAM market income is estimated to exceed 20% this yr from final yr’s 8% stage. As Samsung Electronics rises to HBM manufacturing chief and will increase market share, the tempo of working revenue margin enchancment is predicted to speed up additional. Significantly, as circumstances of massive tech corporations requesting personalized HBM to boost AI accelerator efficiency enhance, technological responsiveness straight interprets to earnings.
An business skilled commented, “The HBM market pie is rising quickly, creating alternatives for each corporations.” They analyzed, “As NVIDIA GPU provide wait instances lengthen, extra massive tech corporations are turning to proprietary chips like Google TPU,” including “The diversification of HBM demand sources might turn out to be a extra favorable scenario for Samsung Electronics, which has IDM capabilities.”
