Samsung HBM4 Sales Reach 1 Billion Dollars in 130 Days as Chairman Lee Jae yong Visits Plants to Secure Supply for Booming AI Memory Market
Samsung Electronics have achieved an accumulated 6th gen high bandwidth memory referred to as HBM4 sales amount to 1,000,000,000 dollars (1,540,000,000,000 KRW). According to semiconductor industry sources, this figure was achieved in about 130 days after the start up of mass production in the second month. Current market trend suggests that accumulated HBM4 amount will reach 1,200,000,000 dollars by half year Mark and the gross sales will cross 10,000,000,000 dollars by the year end.
Chairman of Samsung Electronics Lee Jae yong in midst of this rapid ramp up to visit its then Cheonan manufacturing plants in South Chungcheong Province. The executive toured the manufacturing lines and safety quality control standards in order to secure its complete in this expansion of supply. The worldwide demand for high bandwidth memory has seen increase with various applications using AI with architectures such as the Nvidia Blackwell and Rubin utilizations. This market inversion now applies to older generation hardware with the individual cost of HBM3 increase several times when compared to its original mass production price 4 years ago.
The performance benefits of the samsung HBM4 result from the use of a forward looking 4nm foundry process on the all important underlying logic base die. This design enables the memory to attain an 11.7 Gbps data processing rate about 46% faster than comparable industry offerings, thus alleviating load stall conditions that can often afflict AI models as they scale up in sophistication. Beyond that however HBM4 represents a jump in bandwidth of 2.7x over its forerunner device along with a 40% reduction in total power consumption.
As the top developers of graphic processing units and hyperscalers move away from commodity hardware to custom application specific integrated circuits, Samsung s customer base is being redefined. Together with the growing demands for the customized design Samsung projects an improvement of more than 3 folds in its total high bandwidth memory revenue in 2023 vis a vis the previous year. The future strategy is to preserve the technical edge by creating the next genHMB4E and HBM5 architectures in which advanced packaging capabilities as well as logic base die design would be the key aspects for performance differentiation.
The broader memory market is still robust because of the continued artificial intelligence investment cycle. The Bank of America forecast predicts that the world high bandwidth memory market will expand 58% to a total value of 54,600,000,000 dollars this year. Likewise the World Semiconductor Trade Statistics group predicts the entire world s semiconductor market will be close to 975,000,000,000 dollars in value. Financial valuations from Goldman Sachs foretell an even more substantial growth for the high bandwidth memory market with a 82% rise in custom application specific integrated circuit consumption, and will command approximately 1/3 of the entire market.
Hence the diversification of customer base – which again play to the strengths of Samsung as a total integrated device manufacturer – and because of this, it is in a very good position, because it has in house is the memory fabrication, logic design, foundry services and advanced packaging, so it can flexible to meet any custom requirement from the technology customer, we are also able to sustain production yields when its rolling in volume.
