On August 13th, as per a report from Wallstreetcn citing industry sources, it’s indicated that SK hynix has raised the price of its DDR5 DRAM by 15% to 20%. Per the sources, the price hike by hynix is primarily due to the production capacity being squeezed by HBM3/3e. Additionally, the increased orders for AI servers downstream have also strengthened SK hynix’s resolve to raise DDR5 prices.

According to industry sources cited by Economic Daily News, for Taiwanese manufacturers, Nanya Technology has recently started mass production of DDR5, just in time to benefit from this price surge. Module makers such as ADATA and Team Group are also likely to see gains from low-cost inventory.

Nanya Technology has begun shipping its 16Gb DDR5, developed using its 1B process. Nanya Technology is optimistic that the DRAM market is on a clear path to recovery. This may due to last year’s production cuts by the three major memory manufacturers—Samsung, SK hynix, and Micron—as well as the strong demand for HBM driven by generative AI. The resulting chain reaction is expected to positively impact various types of DRAM.

SK hynix previously announced that its entire HBM production capacity for 2024 has been fully booked, with almost all of its 2025 capacity also sold out. To meet customer demand, SK hynix plans to convert over 20% of its existing DRAM production lines to mass-produce HBM.

Samsung, on the other hand, is said to be actively trying to catch up with SK hynix, looking to allocate around 30% of its DRAM production capacity to HBM.

The significant adjustments by Samsung and SK hynix to their production lines have severely squeezed the capacity for DDR4 and DDR5 DRAM, potentially leading to a sharp reduction in supply and causing prices to rise. Reportedly, SK hynix’s price increase for DDR5 primarily targets contract prices.

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• [News] Nanya Technology Chairman Names 10nm 1B Process as Key Expansion Focus for the Year
• [News] DRAM Price Surge Halts, Could HBM Demand Drive Price Increases?

(Photo credit: Nanya Technology)

In the memory sector, the era beyond 10nm seems to be around the corner, as giants have revealed plans on the production of 1c DRAM. SK hynix, according to a report by The Elec, is said to develop a 4F2 (square) DRAM in order to reduce the high cost associated with the extreme ultraviolet (EUV) processes since the commercialization of 1c DRAM.

During an industry conference on Monday, Seo Jae Wook, a SK hynix researcher, questioned the profitability of producing DRAM with EUV technology. Instead, he said that SK hynix is exploring the possibility of manufacturing future DRAMs using vertical gate (VG) or 3D DRAM structure, according to the report.

Sources cited by the report indicate that Samsung and SK hynix are both targeting to apply 4F2 for DRAM at the 10nm node and beyond. According to Seo, by applying VG or the 3D DRAM structure, the cost of the EUV processes can be reduced by half.

SK hynix’s VG, or the so-called 4F2 by memory makers internally, is similar to the vertical channel transistor (VCT) of its South Korean competitor Samsung, The Elec explains.

In short, unlike the traditional 2D DRAM, which only uses the horizontal plane, 4F2, or 3D DRAM, is a cell array structure where transistors are stacked vertically. In the structure, various parts including the source, gate, drain, and capacitor are stacked from bottom to top. As the word line connects to the gate, the bit line connects to the source.

According to the report, arranging the cell array in this manner can reduce the die surface area by 30% compared to 6F2 DRAM.

However, according to a previous report by TweakTown, though the 4F2 design possesses the advantages of being compact and power-efficient, its complexity demands extreme precision in fabrication, higher-quality materials for production, and extensive research to make it scalable and suitable for mass production.

According to TweakTown, Samsung is anticipated to finalize the initial development of VCT DRAM by 2025, with 3D DRAM expected to enter the market by 2030.

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• [News] SK hynix Reportedly Develops NAND over 400 Layers, Eyeing Mass Production Ready by 2025
• [News] SK hynix CEO: Demand for Memory Chips to Remain Robust until 1H25, Driven by HBM

(Photo credit: SK hynix)

Facing increased market demand and the ongoing recovery of the memory industry, a report from Korean media outlet ETNews has reported that Samsung has confirmed its investment plan for the 6th-Generation DRAM production line at the Pyeongtaek P4 plant, with the goal of starting mass production in June 2025.

Reportedly, the 6th-generation DRAM, known as ‘1c ,’ is a next-generation DRAM utilizing 10nm-class technology. Despite it is said to be a product that has not yet been commercialized in the global semiconductor industry, both Samsung Electronics and SK hynix are already preparing for mass production.

Samsung’s Pyeongtaek P4 is a comprehensive semiconductor production center, divided into four phases.

As per ETNews, Samsung plans to initiate 1c DRAM production by the end of this year. The company is said to be considering launching HBM4 using 1c DRAM in the second half of 2025.

Given that HBM consumes significantly more DRAM than traditional memory, it is speculated by the report that Samsung’s construction of the 1c DRAM production line at the Pyeongtaek P4 plant may also be in preparation for HBM4.

As per TrendForce’s latest report on the memory industry, it’s revealed that DRAM and NAND Flash revenues are expected to see significant increases of 75% and 77%, respectively, in 2024, driven by increased bit demand, an improved supply-demand structure, and the rise of high-value products like HBM.

Furthermore, TrendForce also reports that Samsung’s P4L facility will be the key site for expanding memory capacity starting in 2025, starting with NAND production. Equipment installation for DRAM is expected to begin in mid-2025, with mass production of 1c nanometer DRAM slated to commence in 2026.

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• [News] Samsung Develops Custom HBM with Tech Giants, with Commercialization Expected in HBM4
• [News] Overview of Expansion Plans by HBM Giants

(Photo credit: Samsung)

According to a report from Korea media outlet Yonhap News Agency, South Korea’s memory export to Taiwan has surged by 225% in the first half of the year.

The primary driver of this increase is reportedly due to South Korean chipmaker SK hynix’s supply of HBM to U.S. AI chip giant NVIDIA, which packages its AI accelerators at Taiwan’s TSMC.

A researcher at the Korea Institutes for Industrial Economics & Trade, Kim Yang-paeng, also noted that the sharp increase in exports is likely related to SK hynix’s supplies for TSMC’s final packaging of AI accelerators.

The report from Economic Daily News further highlights the strong momentum in NVIDIA’s AI chip shipments, with TSMC, as the key manufacturing partner, receiving steady advanced process orders.

The report from Yonhap News Agency also cited data from the industry ministry and the Korea International Trade Association released on August 11th, showing that South Korea’s memory exports to Taiwan in the first half of the year grew by 225.7% year-on-year, reaching USD 4.26 billion.

This growth significantly outpaces the overall increase in South Korea’s memory exports, which was 88.7%. Additionally, Taiwan has become South Korea’s third-largest market for memory exports in the first half of the year, climbing two spots to surpass Vietnam and the United States.

Another Korean media outlet, The Korea Herald, noted that since the 2010s, South Korea’s annual memory exports to Taiwan have ranged between USD 1 billion and 4 billion. The latest data indicates that this year’s export volume may set a new record, potentially reaching USD 8 billion.

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• [News] SK hynix CEO: Demand for Memory Chips to Remain Robust until 1H25, Driven by HBM
• [News] Samsung’s 8-layer HBM3e to Start Mass Production in Q3, Driving HBM Sales to Soar 3-5 Times in 2H24

(Photo credit: SK hynix)

As the demand for memory chips used in AI remains strong, prompting major memory companies to accelerate their pace on HBM3e and HBM4 qualification, SK hynix CEO Kwak Noh-jung stated on August 7 that driven by the high demand for memory chips like high-bandwidth memory (HBM), the market is expected to stay robust until the first half of 2025, according to a report by the Korea Economic Daily.

However, Kwak noted that the momentum beyond 2H25 “remains to be seen,” indicating that the company needs to study market conditions and the situation of supply and demand before making comments further. SK hynix clarified that was not an indication of a possible downturn.

According to the analysis by TrendForce, HBM’s share of total DRAM bit capacity is estimated to rise from 2% in 2023 to 5% in 2024 and surpass 10% by 2025. In terms of market value, HBM is projected to account for more than 20% of the total DRAM market value starting in 2024, potentially exceeding 30% by 2025.

SK hynix, as the current HBM market leader, said earlier in its earnings call in July that its HBM3e shipment is expected to surpass that of HBM3 in the third quarter, with HBM3e accounting for more than half of the total HBM shipments in 2024. In addition, it expects to begin supplying 12-layer HBM3e products to customers in the fourth quarter.

The report notes that for now, the company’s major focus would be on the sixth-generation HBM chips, HBM4, which is under development in collaboration with foundry giant TSMC. Its 12-layer HBM4 is expected to be launched in the second half of next year, according to the report.

Samsung, on the other hand, had been working since last year to become a supplier of NVIDIA’s HBM3 and HBM3e. In late July, it is said that Samsung’s HBM3 has passed NVIDIA’s qualification, and would be used in the AI giant’s H20, which has been developed for the Chinese market in compliance with U.S. export controls. On August 6, the company denied rumors that its 8-layer HBM3e chips had cleared NVIDIA’s tests.

Notably, per a previous report from the South Korean newspaper Korea Joongang Daily, following Micron’s initiation of mass production of HBM3e in February 2024, it has recently secured an order from NVIDIA for the H200 AI GPU.

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• [News] SK hynix, TSMC, and NVIDIA Reportedly Forge Alliance to Develop Next-Generation HBM
• [News] SK hynix Secures up to USD 450 Million Funding for Indiana Packaging Facility under CHIPS Act

(Photo credit: SK hynix)