As Samsung eagerly accelerates its pace on the HBM3e certification with NVIDIA, SK hynix, the current HBM market leader, is reportedly planning another move to strengthen its relationship with the AI giant. According to a report by Korean media Money Today, SK hynix is teaming up with Amkor Technology to target the silicon interposer market, eyeing to become a supplier for NVIDIA.

Citing sources from the semiconductor industry, the report notes that SK hynix has discussed with Amkor, the world’s second-largest OSAT (Outsourced Semiconductor Assembly and Test) company, about sending interposer samples. The process involves SK hynix sending its HBM and interposers to Amkor, which then combines them with GPUs from customers like NVIDIA to assemble AI accelerators.

A silicon interposer is a substrate on which GPUs and HBM are arranged and connected with the 2.5D/3D packaging. According to the report, drawing circuits on silicon to connect chips allows for more precise circuitry compared to using PCBs (Printed Circuit Boards) in traditional 2D packaging, which makes silicon interposers essential for packaging AI accelerators like NVIDIA’s A100 and H100.

Regarding the rumor, citing a SK hynix representative, the report states that the discussion is still in the early stages, while the company is conducting various reviews to provide interposers that meet customer demands.

It is worth noting that the entry barrier for silicon interposers seems to be high, as only a few semiconductor giants, including TSMC, UMC and Samsung, can supply silicon interposers with their own packaging technologies, such as TSMC’s CoWoS (Chip-on-Wafer-on-Substrate) technology and Samsung’s I-Cube.

As Samsung is currently providing NVIDIA with its silicon interposers and I-Cube packaging services, SK hynix tries to further expand its leadership in HBM by entering the silicon interposer sector, the report notes, which may also alleviate the supply shortage for HBM and interposers as NVIDIA’s AI accelerators are in high demand.

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(Photo credit: SK hynix)

As Samsung actively expands its high-bandwidth memory (HBM) capabilities, it is also striving to enhance the penetration rate of its existing memory products in mobile devices such as smartphones. On July 16, Samsung announced that it has completed verification of its latest LPDDR5X DRAM, which can be paired with MediaTek’s next-generation smartphone chips.

Since MediaTek has yet to release its next-generation 5G flagship chip, the Dimensity 9400, Samsung’s announcement has drawn greater attention to the upcoming release date of the Dimensity 9400.

Samsung’s LPDDR5X DRAM boasts a 25% performance improvement over the previous generation, with increased execution speed, and will be compatible with the Dimensity 9400 chip set to be released in the fourth quarter. Industry sources cited by Economic Daily News further note that this means smartphone brands that choose the Dimensity 9400 as their main chip can also opt for Samsung’s LPDDR5X DRAM as the mobile memory solution for their new devices.

Samsung’s latest LPDDR5X DRAM claims to extend the battery life of mobile devices and enhance the speed of AI functions within the device, such as voice-to-text generation, without the need for server or cloud access.

According per another report by the Korea Economic Daily, JC Hsu, General Manager of MediaTek’s Wireless Communication Business Unit, stated that Samsung’s LPDDR5X DRAM, with an execution speed of up to 10.7 Gbps, will leverage more AI capabilities and performance of MediaTek’s upcoming products.

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• [News] Samsung’s HBM3e Rumored to be Certified by NVIDIA, Boosting DDR5 Price Increases in Q3
• [News] Samsung Develops Custom HBM with Tech Giants, with Commercialization Expected in HBM4

(Photo credit: Samsung)

According to a report by Yonhap News Agency, data released by Korea’s Ministry of Science and information and communication technology ICT on July 15 shows that in the first half of this year, Korea’s ICT industry exports grew by 28.2% YoY to USD 108.85 billion, setting the second-highest record for the same period in history.

Fueled by demands in the AI, IT information technology, and telecommunications equipment markets, semiconductor exports, one of Korea’s main export products, surged by 49.9% YoY, reaching USD 65.83 billion.

On a market segment basis, Korea’s memory exports in the first half of the year saw a hike of 88.7% YoY, driven by increased exports of products like high bandwidth memory (HBM).

Due to increased investment in server and data center as well as increased demand for personal computer and other devices, exports of computers and peripheral devices rose by 35.6% YoY; instead, mobile phone exports decreased by 2.8% YoY to USD 5.58 billion.

In June, ICT exports grew by 31.1% YoY, reaching USD 21.05 billion, the highest value for the same month in history. Semiconductor exports were USD 13.44 billion, also setting a record high for the same month. Notably, memory chip exports soared by 85.2% YoY, reaching USD 8.83 billion.

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(Photo credit: SK Hynix)

As per a report from Korea Economic Daily citing unnamed sources on July 15th, Samsung Electronics is preparing to mass-produce the logic die for HBM4 using its advanced 4nm process.

The logic die, situated at the bottom of the chip stack, is a core component of HBM. Memory manufacturers are already capable of producing logic dies for existing products like HBM3e. However, regarding HBM4, the sixth-generation model, with its custom features demanded by customers, requires additional wafer processing steps.

Reportedly, Samsung’s 4nm process, which boasts is said boasting a yield rate exceeding 70%, is one of their flagship technologies. This advanced process is also used in producing the Exynos 2400 processor for their flagship AI smartphone, the Galaxy S24.

An industry source cited by the report further stated that the 4nm process is much costlier than the 7nm and 8nm but significantly better in terms of chip performance and power consumption. Reportedly, Samsung, which manufactures HBM3e with the 10nm process, is looking to take the throne in the HBM sector by applying the 4nm process.

On the other hand, SK Hynix announced its collaboration with TSMC in April 2024. In a statement released on April 19th, SK Hynix stated that the two semiconductor giants will collaborate on developing the 6th generation HBM4 chips, with production scheduled for 2026.

The same report from the Korean Economic Daily also addressed that, Samsung has reportedly deployed employees from its System LSI division to the newly established HBM research team. In response to Samsung’s actions, SK Hynix and TSMC have decided to add the 5nm process in addition to the originally planned 12nm process for producing the logic die of HBM4.

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• [News] Samsung Develops Custom HBM with Tech Giants, with Commercialization Expected in HBM4
• [News] Samsung Establishes New HBM Team to Advance HBM3, HBM3e and HBM4 Development

(Photo credit: Samsung)

Though Samsung has denied the rumor that its HBM3e passed NVIDIA’s qualification tests, multiple Taiwanese companies in the supply chain reportedly learned that the product is expected to receive certification soon, and will start shipping in Q3. As memory manufacturers are said to shift at least 20-30% of their production capacity to HBM, tightening supply further, DDR5 prices in Q3 will reportedly be on the rise.

It is reported that some of Samsung’s supply chain partners have recently received information to place orders and reserve capacity as soon as possible, which indicates the memory giant’s HBM may begin shipments smoothly in the second half of the year. The move may also imply that the internal capacity allocation within Samsung will accelerate, shifting the focus of production lines to HBM.

Taiwanese memory supply chain sources reportedly believe that the news of Samsung’s HBM certification is likely to be confirmed at the upcoming Samsung financial report meeting, which will take place on July 31. It is said that memory manufacturers will relocate at least 20-30% of their production capacity, driving DDR5 prices to rise.

TrendForce notes that a recovery in demand for general servers—coupled with an increased production share of HBM by DRAM suppliers—has led suppliers to maintain their stance on hiking prices. As a result, the ASP of DRAM in Q3 is expected to continue rising, with an anticipated increase of 8–13%. Due to high average inventory levels of DDR4 among buyers, purchasing momentum will be focused on DDR5.

On the other hand, regarding NAND prices in Q3, TrendForce reports that while the enterprise sector continues to invest in server infrastructure, the consumer electronics market remains lackluster. This, combined with NAND suppliers aggressively ramping up production in the second half of the year, is likely to curb the blended price hike to a modest 5–10%.

According to TrendForce’s latest analysis, Samsung’s initial plan to pass NVIDIA’s certification in Q2 was delayed, making it falling behind SK hynix and Micron. Simultaneously, some HBM suppliers also faced lower-than-expected production yields, leading to concerns about a shortage of HBM3e 8hi materials for the H200 GPU shipments starting in Q2 2024.

However, Samsung adjusted its 1alpha nm front-end production process and back-end stacking process in the first half of 2024, leading the industry to expect that sample production could be completed in Q3 2024, followed by product certification.

Read more

• [News] Samsung’s HBM3e Reportedly Passed NVIDIA’s Certification Though It Denies the Rumor
• Demand for Servers to Support Second Half of the Year; DRAM Prices Expected to Increase by 8–13% in Q3, Says TrendForce

(Photo credit: Samsung)