Samsung Electronics plans to expand production of 4-nanometer to meet HBM4 demand

According to Money Today on September 21, Samsung Electronics is advancing the expansion of advanced process capacity in wafer foundry due to the growth of the HBM market. To meet the rising demand for HBM4 base chips, it is evaluating the expansion of its 4-nanometer process. Samsung's HBM4 consists of 10-nanometer 6th generation (1c) DRAM core chips and 4-nanometer logic base chips, with the base chips responsible for high-speed data exchange with AI accelerators such as GPUs.

Unlike SK Hynix, which uses TSMC's 12-nanometer process for HBM4 base chips, Samsung employs its own 4-nanometer process. This production line is operating at full capacity and has taken on orders from companies like Nvidia and Groq for 3 LPU, and the company has recently raised its prices for new 4-nanometer orders and HBM4 base chips. Samsung expects HBM4 revenue in the third quarter to increase more than threefold quarter-on-quarter, with HBM4 accounting for significantly more than 60% of HBM revenue in the second half of the year. The additional expansion at P4 in Pyeongtaek will mostly be used for 1c DRAM for HBM, with more than half of the wafer foundry's 4-nanometer capacity allocated to HBM4 base chips.

HBM4E also uses 4-nanometer base chips, and Samsung provided samples to customers in May. The company is also evaluating the construction of a new 2-nanometer production line for HBM5, aiming for a GAA structure 2-nanometer process and increasing TSV density to improve operating speed by more than 50% compared to HBM4E. Samsung started the first generation of 2-nanometer mass production in the second half of last year and is advancing the second generation of products in the second half of this year. Citigroup expects global HBM bit demand to reach 75.2 billion Gb next year, a year-on-year increase of 62%, with supply around 59.4 billion Gb and a gap of about 21%.