Samsung Electronics, the world-renowned South Korean tech giant, has taken a significant stride towards enhancing its production efficiency and competing in the burgeoning ai processor market by placing orders for advanced chipmaking equipment. According to a report by Reuters, this move is aimed at improving the yield of Samsung’s high bandwidth memory (HBM) chips and securing business from leading ai processor manufacturer Nvidia.
Adoption of Mass Reflow Molded Underfill (MR-MUF) Technique
To boost the production yield of its HBM chips, Samsung is planning to adopt a cutting-edge manufacturing technique called mass reflow molded underfill (MR-MUF). Pioneered by its competitor, SK Hynix, this approach is expected to bring a substantial surge in the production yield of Samsung’s HBM chips. Although mass production using MR-MUF is scheduled to begin as early as next year, the company remains committed to rigorous testing before commencing large-scale production.
Though Samsung denies any technology transition, sources close to the matter suggest that Samsung will employ a hybrid approach in future high-end chips, combining non-conductive film (NCF) and MR-MUF techniques.
Currently, the yield for Samsung’s latest HBM chip using NCF stands at a modest 10 to 20 percent. In stark contrast, SK Hynix boasts an impressive yield of 60 to 70 percent for its chips using MR-MUF. This strategic move by Samsung is expected to strengthen its position in the intensely competitive semiconductor landscape.
In order to secure the essential materials for MR-MUF, Samsung is holding discussions with various suppliers, including Japan-based Nagase. These collaborations emphasize Samsung’s dedication to leveraging global expertise and resources to fortify its market position.
Market Implications and Industry Outlook
The introduction of Samsung’s latest HBM chip, the HBM3E, marks a new era in high-performance computing. Industry analysts anticipate heightened competition in the ai memory segment with mass production planned for the first half of this year.
According to TrendForce’s research, Nvidia is intent on diversifying its HBM suppliers, emphasizing the importance of an adaptable and efficient supply chain. Samsung’s proactive measures to improve chip yields and form strategic partnerships underscore its unwavering commitment to technological innovation and market leadership.
SK Hynix’s Remarkable Turnaround
Reflecting on the industry landscape, SK Hynix’s Chief Financial Officer, Kim Woohyun, highlighted a remarkable revenue growth during the final quarter of 2023. He attributed this turnaround to SK Hynix’s technological leadership in ai memory. The resurgence of SK Hynix underscores the dynamic nature of the semiconductor market, where innovation and technological superiority are vital for long-term success.
