Samsung Electronics announced Thursday that it has begun mass-producing next-generation memory chips for artificial intelligence, calling it an industry breakthrough.
High-bandwidth HBM4 chips are essential for expanding data centers supporting rapid AI growth.
US tech giant NVIDIA, the world’s most valuable company, is expected to be one of Samsung’s main customers.
Samsung said its fabs have started shipping HBM4 products to customers.
Samsung claims this industry-first gives it an early lead in HBM4.
Global demand for AI data centers has driven up orders for advanced memory chips.
Samsung stated its new chip surpasses industry speed standards and is over 40 times faster than previous models.
The company said this meets rising performance demands.
Samsung shares rose more than 6% in afternoon trading in South Korea.
South Korea aims to rank among the top three global AI powers.
Samsung and its South Korean rival, SK Hynix, are leading memory chip producers, both racing to launch HBM4.
Taipei-based research firm TrendForce predicts the memory chip industry revenue will surge to a global peak of more than $840 billion in 2027.
Samsung Electronics reported record quarterly profits earlier this year, powered by strong market demand for its cutting-edge memory chips.
Samsung has invested billions to increase chip output, pledging ongoing investment in advanced processes.
An industry observer said this lets Samsung benefit from growing competition in AI chips.
Samsung previously trailed SK Hynix in HBM3 chip production, highlighting the rivalry between the two companies for leadership in high-bandwidth memory technologies. Kim Dae-Jong, a professor of business at Sejong University, told AFP.
With early HBM4 production, Samsung is now a frontrunner.
NVIDIA designs hardware and powers AI computing, and has a strong presence in human-form memory chips produced by companies such as Samsung and SK Hynix.
The US-based company’s central role in the AI revolution has drawn worldwide attention since the introduction of OpenAI’s ChatGPT in late 2022.
Apple, Microsoft, and Amazon have also produced AI-focused chips, but currently face challenges in acquiring Nvidia’s highly sought-after products.
Manufacturers and analysts warn that chipmakers prioritizing AI-focused chips could shift supply away from standard products, potentially increasing prices for consumer electronics.
Source: Samsung Starts Mass Production Of Next-gen AI Memory Chip
