Samsung's HBM4 chips remain in high demand as it's one of the very few companies that can supply giants like NVIDIA, AMD, and others with the latest high-bandwidth memory chips.
The company had some teething issues with HBM3e, but it appears to have knocked it out of the park with HBM4, with Samsung now reportedly expecting stellar yields for the product by the end of this year.
Higher yields would help improve profitability
According to reports out of South Korea, Samsung has greatly increased its projected yield target for HBM4 chips to 85% by the end of this year. Significant yield improvement efforts made for the 10nm-class 6th-generation 1c DRAM used in HBM4 may contribute to the higher projections.
If the company is able to achieve this target, it would be a considerable step up from its previous projection of 60% yields before the end of this year. Samsung appears to be in a good position to hit this level as yields have reportedly reached 60% already on cold-test basis. This has partly necessitated a rest of internal benchmarks as well.
Customers are also voting with their wallets. Samsung is expected to supply nearly 30% of NVIDIA's HBM4 requirement, a massive order, as NVIDIA remains the top end-market for these chips.
As yields improve further, Samsung may be able to claim a bigger chunk of the pie not just from NVIDIA but from other customers as well who have previously had the bulk of their high-bandwidth memory needs met from its cross-town rival, SK Hynix.
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