The battle for HBM intensifies! Samsung plans to expand production capacity in the 4 nm process, and competitive pressure on SK Hynix (SKHY.US) and Micron (MU.US) has increased sharply

The Zhitong Finance App learned that Samsung Electronics is preparing to expand its advanced foundry production capacity as demand for next-generation memory chips surges and is pushing its 4nm production line to full capacity.

The move could increase competition with SK Hynix (SKHY.US) and Micron (MU.US) — the three memory giants are vying for share in the booming AI chip market.

Samsung expands memory production capacity

According to South Korean media, Samsung is considering expanding its 4nm foundry production capacity to support HBM4 base die production. The basic chip is a logic layer located below the DRAM stack and connects the memory to the AI accelerator.

Unlike SK Hynix, which uses TSMC's 12nm process to manufacture the HBM4 basic die, Samsung is using its 4nm process to produce this component in-house.

Samsung has allocated more than half of its current 4nm production capacity to HBM4 basic die production. Demand also came from other customers, including Nvidia's Groq 3 LPU, which prompted Samsung to raise the price of the new 4nm order.

HBM competition intensifies

This expansion comes at a time when Samsung is speeding up the climb in HBM4 production capacity. The company expects HBM4 revenue to more than triple in the third quarter, and HBM4 will account for more than 60% of its total HBM revenue in the second half of the year.

Samsung's growth is reshaping the competitive landscape. According to Counterpoint data, Samsung's HBM revenue share rose from 21% in the first quarter to 33% in the second quarter, while SK Hynix accounted for 50% and Micron 18%.

The company is also considering a new 2 nm production line for HBM5, and it is anticipated that the base film for HBM5 will use a 2 nm process. This could further strengthen Samsung's vertical integration path, integrating memory, logic manufacturing, and advanced packaging.

SK Hynix and Micron are under pressure

For SK Hynix and Micron, Samsung's faster HBM4 climb poses another competitive challenge at a time when AI infrastructure spending is driving demand for high-bandwidth memory to unprecedented levels.

In June of this year, Samsung was the first supplier to complete HBM4 verification and begin shipping, while SK Hynix faced certification delays, while Micron is still more focused on HBM3E.

Citi expects global demand for HBM bits to grow 62% next year, which could put the industry in short supply. This means that Samsung's expansion of production capacity may allow it to occupy a larger share of the rapidly growing market.