In a significant move within the semiconductor industry, Samsung Electronics Co., the leading memory chip manufacturer globally, has announced a partnership with Taiwan Semiconductor Manufacturing Co. (TSMC) to develop the next-generation HBM4 AI chip. This collaboration is set to enhance their competitive edge in the burgeoning AI chip market.
During the Semicon Taiwan 2024 forum, Dan Kochpatcharin, who leads Ecosystem and Alliance Management at TSMC, revealed that the two tech giants are working together on a bufferless HBM4 chip. High-bandwidth memory (HBM) is a cutting-edge DRAM chip that is crucial for AI applications due to its superior processing capabilities compared to conventional memory chips.
The HBM4 chip represents the sixth iteration of HBM technology, with major memory producers like Samsung, SK Hynix Inc., and Micron Technology Inc. gearing up for mass production to supply AI chip designers such as Nvidia Corp by next year.
Breaking New Ground in AI Chip Collaboration
Industry experts highlight that this partnership between Samsung and TSMC marks their inaugural collaboration in the AI chip domain. Within the foundry sector, Samsung ranks as the second-largest player, maintaining a competitive rivalry with TSMC.
Semicon Taiwan 2024, hosted by the semiconductor industry association SEMI, is a pivotal event for professionals in the chip industry. This year's event, featuring over 1,100 chip-related companies, is taking place at the Taipei Nangang Exhibition Center.
According to industry insiders, the bufferless HBM4 chip is expected to deliver 40% greater power efficiency and 10% reduced latency compared to existing models. As memory manufacturing becomes more intricate, collaboration with partners is increasingly vital, as noted by Kochpatcharin.
Samsung's Ambitious Production Plans
Reports suggest that Samsung's collaboration with TSMC will commence with the advanced sixth-generation HBM4 chip, with plans for mass production in the latter half of next year.
Through this strategic alliance, Samsung aims to offer "customized chips and services" to clients such as Nvidia and Google. While Samsung is capable of providing comprehensive HBM4 services, it seeks to leverage TSMC's technology to attract a broader client base.
This initiative is part of Samsung's broader strategy to outpace its local competitor SK Hynix, which currently leads the HBM market with a 53% share. Samsung holds a 35% market share, according to data from TrendForce.
Innovative Partnerships and Strategic Moves
Lee Jung-bae, corporate president and head of Samsung's memory business, underscored the significance of customized HBM solutions for optimizing AI chip performance. He noted that Samsung is collaborating with various foundry partners to deliver over 20 tailored solutions.
At the CEO Summit during the forum, Lee explained that while Samsung's System LSI and Memory divisions manage chip design and production, the company will utilize the manufacturing capabilities of other foundry players to boost HBM performance.
The production process for HBM4 differs from previous generations, as the logic die, which acts as the core of an HBM chip, will be manufactured by foundry companies rather than memory manufacturers.
Samsung plans to provide a comprehensive service, encompassing DRAM production, logic die production, and advanced packaging. However, it is also considering employing TSMC's technology, as some customers prefer logic dies produced by TSMC.
"To lead in the HBM sector, Samsung must adopt bold strategies that extend beyond mere technological advancements," commented an industry official.
Currently, SK Hynix is the primary supplier of HBM3 AI chips to Nvidia, which commands 80% of the AI chip market. Samsung, having successfully passed Nvidia's qualification tests for its HBM3 chips, is now working towards gaining approval for its HBM3E chips.