Samsung Begins Mass Production of Next-Gen AI Memory Chips | All You Need to Know

Samsung Electronics has started mass production of its next-generation HBM4 high-bandwidth memory chips designed for artificial intelligence data centres. The company said the chips are over 40% faster than older models.

Samsung's industry-first move in HBM4 market

Samsung Electronics has announced that it has started mass production of its next-generation high-bandwidth memory chips, known as HBM4. The South Korean technology giant said it has already shipped commercial products to customers.

In a statement, Samsung described the launch as an “industry-leading” achievement. The company said this marks a first in the industry and gives it an early leadership position in the HBM4 market.

HBM4 chips are seen as a key part of the fast-growing artificial intelligence industry. They are used in powerful data centres that handle huge amounts of information needed for AI systems.

Built for fast-growing AI demand

The world is seeing a sharp rise in the building of AI data centres. These centres require advanced memory chips that can process data at very high speed.

Samsung said its new HBM4 chips are more than 40 per cent faster than older models. The company added that the new chips exceed industry standards for processing speed. This improvement is expected to meet the rising demand for higher performance in AI computing.

High-bandwidth memory chips are designed to move large amounts of data quickly. This is important for training and running AI models, which require strong computing power.

Nvidia expected to be major buyer

US technology company Nvidia is widely expected to be one of Samsung’s main customers for the new chips. Nvidia designs hardware that powers AI computing and has seen massive demand since the launch of OpenAI's ChatGPT in late 2022.

Nvidia is currently the world’s most valuable company. It relies heavily on memory chips made by Samsung and its South Korean rival SK hynix. Both companies have been racing to begin HBM4 production.

Apple, Microsoft and Amazon have also developed chips for AI use. However, they are still working to secure enough Nvidia products, which remain highly sought after.

Strong market response and future growth

After the announcement, Samsung Electronics shares rose more than six per cent in afternoon trading on South Korea’s stock exchange.

Taipei-based research firm TrendForce has predicted that the global memory chip industry will reach a peak of more than 840 billion US dollars in revenue by 2027. The growing demand for AI hardware is a major reason for this expected surge.

Earlier this year, Samsung posted record quarterly profits. The company said strong sales of advanced memory chips helped boost earnings.

Samsung has also announced plans to invest billions of dollars to expand its chip production facilities. It said it will continue spending on advanced manufacturing processes and upgrading existing production lines to meet rising demand.

South Korea’s AI ambitions

The South Korean government has pledged to become one of the world’s top three AI powers, alongside the United States and China. The success of companies like Samsung and SK hynix plays an important role in this goal.

However, industry experts have warned that chipmakers focusing heavily on AI sales may push up retail prices of consumer electronics in the future.

Samsung’s move into mass production of HBM4 chips shows how central memory technology has become in the global AI race.

About new HBM4 AI memory chips

Samsung’s HBM4 chips are next-generation high-bandwidth memory chips built to power artificial intelligence systems. They are designed to move large amounts of data at very high speeds. Samsung says the chips are more than 40 per cent faster than previous models. 

They are mainly used in AI data centres and advanced computing systems, helping companies process complex AI tasks quickly and efficiently.

(With AFP inputs)