Samsung's HBM business is reportedly looking significantly stronger compared to where it was a few quarters ago, as the Korean giant's HBM4 is slated to be the most potent solution available.
Samsung's HBM Market Share Is Projected to Surpass SK hynix By 2027, Driven by Recent Wins
Samsung has been experiencing uncertainity with its DRAM business over the years, and despite being the dominant supplier among all other competitors for decades, the company saw a slowdown once HBM demand started to rise. In particular, with HBM3, Samsung initially failed to secure certification from key clients like AMD and NVIDIA due to issues with DRAM yield rates and thermal concerns. However, following a significant internal shift in strategy, the Korean giant is now back on track.
In its New Year's address, Samsung's co-CEO and chip chief, Jun Young-hyun, stated that the company has seen optimism from external clients regarding HBM4, implying that the firm is looking to capitalize on the demand from the AI industry. Samsung's lead in HBM4 is primarily due to the company having initiated 1c DRAM development ahead of its competitors, and more importantly, it has worked with partners like NVIDIA to secure its position in the supply chain.
"On HBM4 in particular, customers have even stated that 'Samsung is back'," Jun said in remarks reviewed by Reuters, adding that the company still had work to do to further improve competitiveness.
- Reuters
Samsung is known to have HBM4 modules with the industry's fastest pin speeds rated at 11 Gbps, and this is one of the primary reasons why customers like NVIDIA are interested in the solution. Given the company's extensive DRAM supply lines and an internal strategy to ensure competitive HBM4 pricing, Samsung has managed to gain a competitive edge among its rivals. According to Bernstein's HBM modeling (shared by Jukan on X), it is predicted that Samsung's market share is expected to surpass SK hynix by 2027, after losing the lead in the last quarter.
Given the enormity of DRAM demand, it would be incorrect to say that all memory suppliers are not poised to benefit from the order flow coming from AI customers, which is why companies like Micron, SK hynix, and Samsung are optimistic about their future revenues.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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