Samsung is moving quickly to further improve its profits by significantly ramping up the production capacity of sixth-generation high-bandwidth memory (HBM4) chips. The company aims to capitalize on the ongoing boom in the AI chips segment, as it can bring significantly better profits compared to selling regular DDR memory chips.
HBM4 chips are a critical component of next-generation AI accelerator systems from companies such as AMD (MI450) and Nvidia (Rubin). Samsung and SK Hynix are among the few manufacturers capable of producing these advanced memory chips and are close to beginning large-scale shipments. As demand for AI hardware has surged over the past few years, prices for HBM chips have increased as well.
Samsung has reportedly decided (via @jukan05) to increase HBM4 DRAM wafer production to around 120,000 wafers per month. Expanding output at this scale requires substantial investment, and the company is ready to spend aggressively to improve its competitiveness and profitability in the fast-growing AI memory chip market.
To support this expansion, Samsung is reportedly upgrading the P4 production line at its Pyeongtaek semiconductor chip plant in South Korea. It will install new chip manufacturing equipment and enhance existing tools to improve yield and output.
Samsung fell behind rivals last year in the HBM3E segment. However, the company has since worked to address those issues. Early reports suggest its HBM4 chips may offer better performance compared to competing products from Micron and SK Hynix, partly through a more advanced memory fabrication process.
Image Credits: Samsung
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