Samsung Electronics' HBM4 chip has passed the internal mass production readiness certification (PRA) and is accelerating the supply process to NVIDIA. If successfully integrated into its supply chain, Samsung's position in the AI chip sector will significantly improve. Previously, SK Hynix, leveraging its dominant role in HBM4 supply, raised the unit price of chips by over 50%, further solidifying its market pricing power. As NVIDIA's next-generation GPU moves closer to mass production, competition between the two South Korean semiconductor companies in the high-end memory market is expected to intensify.
$Samsung Electronics Co., Ltd. (SSNLF.US)$ A key advancement has been achieved in the High Bandwidth Memory (HBM4) sector, with the chip having passed the Production Readiness Assessment (PRA) and being prepared to supply to NVIDIA.
On December 2, media reports indicated that Samsung Electronics recently completed the Mass Production Readiness Approval (PRA) for HBM4. The chip has met Samsung's internal mass production standards, and the company plans to accelerate its entry into NVIDIA’s supply chain.
If Samsung Electronics secures qualification to supply NVIDIA, its position in the AI chip supply chain will significantly improve. Jensen Huang, CEO of NVIDIA, previously stated that collaboration with Samsung Electronics is not off the table. He emphasized, "Samsung's HBM memory chips have passed testing, and cooperation is proceeding smoothly."
Previously, SK Hynix gained a dominant position in HBM4 supply negotiations, successfully raising the unit price by over 50% to more than $500 per chip, further solidifying its pricing advantage in the high-end memory market.
Samsung Electronics accelerates its catch-up efforts as internal testing yields positive results
Samsung Electronics has recently completed the Mass Production Readiness Approval (PRA) for HBM4. As the final step in Samsung’s internal quality certification process, PRA is considered a critical milestone for mass production, indicating that its HBM4 has met the company’s internal mass production standards. The industry generally believes that passing PRA will positively impact subsequent Qualtest approval by NVIDIA and expedite Samsung’s integration into NVIDIA’s supply chain.
Samsung Electronics initially planned to complete HBM4 performance evaluations and initiate mass production within the year, but after failing to pass NVIDIA’s quality tests, it shifted focus to design optimization, particularly improving key metrics such as thermal performance. Recently, the company has significantly narrowed the technological gap with competitors by optimizing the maturity of DRAM based on the 1c node and enhancing the performance of base chips using a 4-nanometer logic process.
It is worth noting that the manufacturing of HBM4 relies on the complex integration of multiple technologies, including DRAM processes, base chip design, and TSV alignment accuracy. These factors collectively determine the chip’s thermal management and energy efficiency. Samsung Electronics’ breakthrough is expected to reshape the competitive landscape of the HBM market. Currently, NVIDIA is actively securing HBM supplies to prepare for the mass production of its next-generation GPU, “Rubin,” scheduled for the second half of next year, providing Samsung Electronics with a crucial market opportunity.
SK Hynix takes the lead, with HBM4 price increase of over 50% gaining NVIDIA’s approval
SK Hynix demonstrated strong bargaining power in its HBM4 supply negotiations with NVIDIA. The company successfully pushed the price of HBM4 to the 'mid-500 USD range,' representing an increase of over 50% compared to the previous generation. This price adjustment fully reflects its dominant position in the high-end HBM market.
Technological upgrades have provided support for significant price increases. HBM4's data transmission channels (I/O) reach 2,048, double that of the previous generation, HBM3E. Considering the cost increases brought about by technological advancements, SK Hynix has outsourced the base chips it previously produced in-house to Taiwan Semiconductor to optimize its supply chain and control overall costs.
Although NVIDIA initially resisted the substantial price hike and had considered potential large-scale supplies from Samsung Electronics and Micron, leading to a temporary deadlock in negotiations, the final supply price was still set at the level proposed by SK Hynix. SK Hynix executives emphasized that, considering the technological progress and input costs, HBM4 has structural factors justifying a significant price increase.
Editor/Liam