Samsung Electronics is launching an aggressive pursuit of reclaiming its DRAM market leadership after losing ground to SK Hynix in Q1 due to challenges in high-bandwidth memory (HBM) for AI semiconductors. Having achieved a significant improvement in yield rates for its next-generation DRAM, Samsung is moving swiftly into mass production, demonstrating its determination to restore its “memory supremacy.” This development is also seen as a positive sign for the development of HBM4, which Samsung aims to mass-produce within the year, as DRAM is a crucial component of HBM.

According to industry sources on July 19, Samsung Electronics achieved a 50-70% yield rate in performance tests of 10nm (nanometer) class 6th-generation DRAM wafers last month. This marks substantial progress compared to the less than 30% yield rate recorded for the same product last year.

The key to this improvement lies in the redesign. Samsung’s research team implemented various new structural changes to enhance chip efficiency and productivity. While the original plan was to begin mass production of 10nm-class 6th-generation DRAM by the end of last year, Samsung took the risk of redesigning the chip, despite the potential for delays of over a year. This decision ultimately proved correct, leading to significant technological advancements.

Samsung wasted no time in investing in mass production lines, adopting a strategy of preparing the lines in advance to enable immediate production upon completion of final testing. Samsung’s substantial cash reserves and process expertise facilitated this rapid decision-making. An industry insider commented, “Samsung Electronics possesses more abundant resources, both tangible and intangible, compared to SK Hynix and Micron Technology. It remains to be seen whether they can replicate their past strategy of leveraging ‘economies of scale’ to enhance cost competitiveness and then exert pressure on competitors through sheer volume.”

This DRAM mass production is expected to significantly benefit the competitiveness of 6th-generation HBM (HBM4), which Samsung aims to mass-produce within the year.

The products manufactured at the Pyeongtaek Plant 4 DRAM production line, which is the target of this investment, will be supplied for mobile (LPDDR) and server applications. The 10nm-class 6th-generation DRAM production facility for HBM4 is located at Pyeongtaek Plant 3. An industry source stated, “The core structure of the memory cell, the heart of DRAM, is largely similar between mobile/server DRAM and HBM, so this can positively impact the completion of DRAM for HBM.” Based on this successful DRAM mass production, Samsung is likely to make further significant investments in the HBM4 process at Pyeongtaek Plant 3.

While Samsung is moving rapidly into mass production following the achievement of its 10nm-class 6th-generation DRAM yield target, SK Hynix is taking a more measured approach.

SK Hynix completed the development of 10nm-class 6th-generation DRAM in August of last year. SK Hynix is reported to have achieved successful test yields averaging over 80% and reaching up to 90% for this DRAM. However, unlike Samsung, SK Hynix is not expected to immediately commence mass production. While the initial plan was to equip the M14 plant in Icheon, Gyeonggi Province, with the necessary equipment starting in the second half of this year, this has been postponed to early next year, and even this timeline is expected to be approached conservatively. This decision is interpreted as a strategic move to focus on the production of 10nm-class 5th-generation DRAM, which is used in the currently dominant 5th-generation high-bandwidth memory (HBM3E). With production schedules already set for this year, SK Hynix appears to be prioritizing fulfilling existing orders. Having already secured a considerable market share in the HBM sector, they seem to be focusing on consolidation rather than rapid expansion. Another industry insider explained, “SK Hynix seems to believe that the market for 10nm-class 6th-generation DRAM is not yet ready, while Samsung appears eager to regain its technological ‘supremacy,’ driving its proactive investment.”