Samsung Electronics has begun mass production and shipment of high-bandwidth memory HBM4, highlighting a performance increase capable of challenging the long-standing leadership position of SK Hynix in the AI memory sector.
HBM4 is a key component for GPUs and AI accelerators, so any improvements in data transfer speed, supply, and cost can directly impact the AI hardware supply chain, as well as the pricing of consumer electronics.
MAIN CONTENT
Samsung announced that HBM4 achieves 11.7 Gbps, which is 46% higher than the JEDEC standard of 8 Gbps, and can reach 13 Gbps under optimal conditions.
The supply of memory for AI is expected to continue tightening this year and next, which may lead to upward price pressure.
Samsung aims to secure additional HBM orders for the GPU/AI ecosystem, where SK Hynix currently holds an advantage.
Samsung's HBM4 aims to accelerate AI hardware.
Samsung stated that its HBM4 achieves a stable data transfer speed of 11.7 Gbps, which is 46% faster than the JEDEC standard of 8 Gbps, and can reach 13 Gbps when optimized, to meet the strong demand for graphics chips serving training and operation of AI models.
According to Samsung's announcement, HBM4 is positioned as a new generation of high-bandwidth memory, optimized for heavy computational AI tasks. The company emphasized a 'consistent' data transfer speed of 11.7 Gbps compared to the JEDEC standard of 8 Gbps, with the ability to push up to 13 Gbps under optimal conditions.
Samsung also highlighted the market context as demand is rapidly increasing for GPUs serving AI, especially for advanced feature chips used for training and deploying models. In this value chain, high-bandwidth memory is a crucial component to feed data to GPUs, directly impacting processing throughput.
Samsung narrows the gap with SK Hynix in HBM orders for Nvidia.
Samsung acknowledges that SK Hynix has captured a large share of the market and orders for high-bandwidth memory for the GPU ecosystem, but believes that the launch of HBM4 is a strategic move to close the gap and increase selection capability for AI platforms.
For a while, Samsung observed rival SK Hynix expanding its market share and capturing a large portion of HBM orders related to Nvidia, where HBM is a key component for AI accelerators. However, Samsung stated that it has narrowed the gap after years of investment in development.
Samsung links this advance with the commencement of commercial HBM4 deliveries. Detailed information was disclosed by the company at the link: Samsung's strategic move regarding HBM4.
Samsung also noted that both 'big tech' companies are among the most valuable businesses in South Korea by market capitalization. The company believes that stock prices have surged since September last year amid market concerns about memory shortages, reflecting expectations for the AI demand cycle.
Samsung predicts memory supply will continue to tighten over the next 2 years.
The CTO of Samsung's Device Solutions division predicts that supply constraints will be significant this year and next, showing the pressure to balance rapidly increasing AI demand and the production capacity of high-bandwidth memory.
The president and CTO of the Device Solutions division, Mr. Jaihyuk Song, commented on supply constraints for both this year and next. Given that high-bandwidth memory is closely tied to the delivery capacity for AI customers, this forecast implies a risk of prolonged shortages.
Regarding the first delivery phase of HBM4, Mr. Song said Samsung is 'resetting the standard' of the high-performance memory industry and wants to reaffirm its leadership role in the memory sector. He also mentioned that this confidence was shared in Seoul during the Semicon Korea conference, where he was a keynote speaker.
"We are demonstrating Samsung's true capabilities once again. Although there has been a period when we have not fully showcased how Samsung meets customer demand with cutting-edge technology, you can see this as a return to form."
– Jaihyuk Song, President & CTO of the Device Solutions division, speaking at Semicon Korea.
Concerns about memory chip supply shortages could drive prices up.
Industry leaders at Samsung believe that memory chip supply shortages could lead to price increases across the industry, creating cost pressure on many product lines from phones and laptops to smart home devices and self-driving cars.
According to Samsung's industry leaders, if the memory supply shortage persists, prices could rise broadly and also affect Samsung's own customer product portfolio. This is a common risk when 'foundational components' experience cost fluctuations in the supply chain.
Reports also emphasize that even as a leading memory manufacturer, Samsung is still constrained by rising costs of basic components used in many devices, from smartphones, laptops, smart home devices to self-driving cars.
"There will be challenges related to semiconductor supply, and people will feel the impact. Prices are rising right now. We certainly do not want to pass those costs onto consumers, but there may come a time when we have to reconsider product prices."
– Wonjin Lee, President & Head of Global Marketing, speaking at CES in Las Vegas.
Frequently Asked Questions
What is HBM4 and why is it important for AI?
HBM4 is a new generation of high-bandwidth memory used to provide very high-speed data to GPUs and AI accelerators. For training and deploying AI models, memory bandwidth is a critical bottleneck, so HBM significantly impacts system performance.
What is the announced speed of Samsung's HBM4?
Samsung announced that HBM4 achieves a stable data transfer speed of 11.7 Gbps, which is 46% higher than the JEDEC standard of 8 Gbps, and can be pushed up to 13 Gbps under optimal conditions.
Why are there concerns about memory supply shortages?
The strong demand for AI hardware has led to increased demand for HBM and various memory chips. Samsung forecasts significant supply constraints this year and next, and the company's leadership believes this could trigger price increases across the industry.
How could memory chip shortages affect device prices?
If memory chip costs rise, price pressure may spill over into many products such as phones, laptops, smart home devices, and self-driving vehicle systems. Samsung stated that it does not want to pass the costs onto consumers, but may have to reconsider pricing if pressure persists.