- Samsung starts mass production of next-gen HBM4 AI memory chips
- Nvidia is expected to be a key buyer with global AI data centre growth fueling the demand
- Samsung claims early leadership in the HBM4 market and expands production plans
Samsung Electronics announced on Thursday, February 12, that it has started mass production of next-generation memory chips designed to power artificial intelligence, calling it an “industry-leading” breakthrough.
The high-bandwidth HBM4 chips are considered crucial for scaling up the massive data centres driving the rapid expansion of AI. US tech giant Nvidia, currently the world’s most valuable company, is expected to be among Samsung’s primary buyers.
Samsung said it had “begun mass production of its industry-leading HBM4 and has shipped commercial products to customers.
“This achievement marks a first in the industry, securing an early leadership position in the HBM4 market,” the South Korean company added in a statement.
The global rush to build AI data centres has driven a surge in orders for advanced, high-bandwidth memory microchips.
Samsung claimed its new chip is significantly faster than previous models, exceeding industry standards for processing speed by more than 40 per cent, meeting “escalating demands for higher performance,” the company said.
Following the announcement, Samsung Electronics’ stock rose more than six per cent in afternoon trading on South Korea’s stock exchange.
The South Korean government has pledged to become one of the world’s top three AI powers, alongside the United States and China.
Samsung, along with domestic rival SK hynix, is already among the leading producers of high-performance memory chips, and both companies have raced to launch HBM4 production.
Taipei-based research firm TrendForce predicts that memory chip industry revenue will peak at over $840 billion globally by 2027.
Samsung Electronics earlier posted record quarterly profits, boosted by soaring demand for its high-performance memory chips. The company has earmarked billions of dollars to expand chip production, pledging to continue investing in “transitioning to advanced manufacturing processes and upgrading existing production lines to meet rising demand.”
Nvidia designs hardware that powers AI computing and has an almost insatiable appetite for memory chips from Samsung and SK hynix. The US company’s pivotal role in the AI revolution has taken the world by storm since the launch of OpenAI’s ChatGPT in late 2022.
Apple, Microsoft, and Amazon have also developed AI-focused chips, but for now remain largely reliant on Nvidia’s products.