Samsung Electronics Surpasses SK Hynix in HBM Production for First Time

Samsung Electronics has overtaken SK Hynix in high bandwidth memory (HBM) production capacity to become the industry leader. This achievement stems from a preemptive conversion of DRAM production lines to HBM lines and a focus on yield stabilization. Driven by explosive artificial intelligence (AI) semiconductor demand, the production competition between the two companies is expected to intensify further next year.

According to industry sources on Dec. 1, Samsung Electronics’ HBM production volume has recently expanded to 170,000 wafers per month based on wafer input, surpassing SK Hynix’s 160,000 wafers. Samsung Electronics had previously maintained around 150,000 wafers per month. The company leveraged its overwhelming production capacity and technological prowess to surpass its rival. 

Samsung Electronics is accelerating facility investments to expand production capacity while maintaining momentum. The company is converting or expanding some DRAM production lines (P3·P4) at the Pyeongtaek campus into cutting-edge 1c DRAM (10-nanometer class 6th generation) lines for HBM production. This is expected to directly impact fourth-quarter performance improvement. Last month, the company decided to proceed with structural construction for Pyeongtaek Plant 5 (P5), accelerating response to the memory super cycle.

SK Hynix is also continuing an aggressive production increase approach. The key to competition between the two companies centers on HBM line conversion speed and new factory construction. While Samsung Electronics employs a strategy of rapidly converting existing vast general-purpose (legacy) memory lines to HBM to pour out volume, SK Hynix focuses on early operation of new fabs. SK Hynix is raising the operation rate of the Icheon M16 line while hastening quick operation of the Cheongju M15X factory.