As Samsung Electronics said it had begun mass production and shipment of sixth-generation high-bandwidth memory (HBM4) to Nvidia, the company is reportedly throwing its full weight behind stabilizing the Production yield of 10-nanometer-class sixth-generation (1c) DRAM used in HBM4. Until now, Samsung Electronics focused on boosting product performance to enter Nvidia's supply chain, but stabilizing the Production yield is an urgent task to improve profitability and ensure on-time delivery of contracted volumes.
According to the industry on the 24th, the mass-production Production yield of the logic die that serves as the brain of Samsung Electronics' HBM4 is currently understood to exceed 80%. The Samsung Electronics HBM4 logic die is mass-produced using the 4-nanometer (nm; one-billionth of a meter) process of the Samsung Electronics foundry division. While the logic die Production yield has entered a stable range, the 1c DRAM process Production yield used in HBM4 is said to be hovering around 60%, indicating the need to boost the Production yield.
A semiconductor industry official said, "In the stage of producing test samples last year, the logic die Production yield sometimes exceeded 90%, but as a new process was introduced to improve performance, the current logic die Production yield appears to be in the 80% range," adding, "The logic die Production yield is stable enough to enable commercialization. Now the focus is on stabilizing the Production yield of the 1c DRAM and packaging used in HBM4."
To enter the HBM4 market, Samsung Electronics played a winning card by applying a process more advanced than its rivals. While SK hynix and Micron are using 10-nanometer-class fifth-generation (1b) DRAM processes for HBM4, Samsung Electronics is notable for applying 1c DRAM. For the logic die as well, Samsung Electronics uses the 4 nm process of the Samsung Electronics foundry division, which is ahead of SK hynix that applies TSMC's 12 nm process and Micron that uses its own DRAM process.
In semiconductor manufacturing, finer processes are used with each generation. Applying a fine process narrows the line width of the semiconductor circuit, shortening the distance electrons travel to increase operating speed, and lowering the voltage required for operation to improve power efficiency. The 1c DRAM Samsung Electronics applied to HBM4 is known to be at the 11–12 nm level, while the 1b DRAM used by SK hynix and Micron is at the 12–13 nm level.
With this strategy, Samsung Electronics became the first to begin mass-production shipments to Nvidia, but the task of boosting the Production yield remains. The 1b DRAM used by SK hynix and Micron has been in mass production for one to two years, and its Production yield has stabilized. The two corporations' 1b DRAM process Production yield is known to exceed 80%. Because HBM4 stacks 12 DRAM chips, if the DRAM process falls below 80%, profitability is structurally bound to deteriorate sharply. Some analysts said Samsung Electronics' move to raise the product selling price of HBM4 by more than 20% compared with the previous generation reflected the lackluster Production yield.
Samsung Electronics is reportedly mobilizing every available measure to boost the Production yield, from changing DRAM designs to revising production processes. With Nvidia set to launch its Rubin platform equipped with HBM4 this year, improving the Production yield is essential not only to strengthen profitability but also to reliably supply the needed volumes on time. SK hynix, for its part, has chosen a strategy of maximizing profitability by securing the position of top supplier based on a stable Production yield.
A semiconductor industry official said, "I understand Nvidia also asked Samsung Electronics to come up with measures to raise the Production yield to ensure stable supply volumes," adding, "Since 1c DRAM will go not only into HBM4 but also into seventh-generation HBM (HBM4E), the company appears to be going all out to stabilize the Production yield, including partially changing the DRAM design."