Samsung’s HBM4 Chip Gamble Aims to Reclaim AI Market Share from Rivals

Samsung Electronics is aggressively developing its next-generation HBM4 memory chips. The company is determined to avoid repeating its costly mistake of missing the initial AI boom. According to Reuters, the tech giant is in final-stage negotiations with Nvidia to supply these advanced components.

This push comes after Samsung’s previous HBM3E chips faced significant overheating issues. These problems caused the company to lose substantial market share to competitors SK Hynix and Micron.

Superior Technology Drives Samsung’s HBM4 Ambitions

Samsung is employing a more advanced 1c DRAM process for its HBM4 chips. This technology uses a finer circuit line width compared to the 1b DRAM used by its rivals. The result is expected to be chips with enhanced speed and superior power efficiency.

This technological edge is crucial for Samsung’s comeback strategy. The company is reportedly targeting a price point competitive with SK Hynix. Industry analysis suggests HBM4 chips could see a 50% price increase over the current HBM3E generation.

Nvidia’s immense demand for high-bandwidth memory far exceeds current production capacity. This market dynamic gives Samsung a strong position in its negotiations. The chip designer may have little choice but to accept Samsung’s HBM4 chips, even at a higher cost.

Yield Improvement is the Critical Challenge

The primary hurdle for Samsung is not performance, but manufacturing yield. Its current HBM4 production yield is reportedly around 50%. In the high-stakes HBM market, a yield this low is considered insufficient for profitable mass production.

Samsung is planning a massive expansion of its 1c DRAM production capacity. The company aims to increase output from 20,000 wafers per month to 150,000 by next year. This will involve converting existing mature DRAM production lines to support the new technology.

Nvidia’s quality assessment of Samsung’s HBM4 samples is imminent. If the chips pass, mass production could begin by the second or third quarter of 2026. Success would position Samsung to capture a market share rivaling that of current leader SK Hynix.

The race for HBM4 dominance is heating up. Samsung’s technological bet could reshape the entire AI chip supply chain. Billions of dollars in revenue are at stake for the memory chip titan.

Info at your fingertips

What are HBM chips used for?

HBM, or High-Bandwidth Memory, is a specialized type of memory. It is crucial for accelerating artificial intelligence workloads in data center GPUs. These chips allow for much faster data processing than standard memory.

Why did Samsung lose HBM market share?

Samsung’s initial HBM3E chips had technical problems with overheating. These issues prevented them from passing Nvidia’s quality tests. The delay allowed SK Hynix and Micron to secure the majority of the market.

When will Samsung’s HBM4 chips be available?

Mass production is tentatively scheduled for late 2026. This depends on successful qualification tests with Nvidia early next year. If all goes to plan, shipments could start in the second or third quarter.

How does Samsung’s HBM4 technology differ?

Samsung is using a more advanced 1c DRAM manufacturing process. This is a generation ahead of the 1b technology used by its competitors. The result should be faster and more power-efficient chips.

What is the price of HBM4 chips?

Early reports suggest HBM4 chips could be priced around $500. This represents a significant increase over current HBM3E chips. The high cost reflects the advanced technology and manufacturing complexity.