Samsung Electronics, the world’s leading memory chipmaker, is planning to adopt a chip making technology championed by rival SK Hynix in a bid to catch up in the race to produce high-end chips used for artificial intelligence (AI) applications, according to sources familiar with the matter.
The demand for high bandwidth memory (HBM) chips has surged with the increasing popularity of generative AI. However, Samsung has lagged behind its peers, SK Hynix and Micron Technology, in securing deals to supply the latest HBM chips to AI chip leader Nvidia.
One of the factors contributing to Samsung’s delay in HBM chip production is its decision to stick with a chip making technology called non-conductive film (NCF), which has production issues. In contrast, SK Hynix has adopted the mass reflow molded underfill (MR-MUF) method to address NCF’s weaknesses, resulting in higher production yields.
In a recent development, Samsung has placed purchase orders for chipmaking equipment capable of handling the MR-MUF technique. While this move may be seen as a departure from Samsung’s previous approach, it reflects the company’s determination to improve its HBM chip production yields.
Analysts estimate that Samsung’s current HBM3 chip production yields stand at approximately 10-20%, while SK Hynix has achieved yield rates of 60-70% for its HBM3 production. These figures highlight the urgency for Samsung to adopt more efficient chip making techniques.
Furthermore, Samsung is reportedly in discussions with material manufacturers, including Japan’s Nagase, to source MR-MUF materials. However, mass production of high-end chips using this technique is not expected until next year, as Samsung needs to conduct further tests.
Despite the introduction of MR-MUF, Samsung plans to utilize both NCF and MR-MUF techniques for its latest HBM chip. The company defends its NCF technology, stating that it is an “optimal solution” for HBM products and will be utilized in its new HBM3E chips.
Samsung’s decision to embrace MR-MUF underscores the increasing pressure it faces in the AI chip market, which is projected to double in value to nearly $9 billion this year due to rising AI-related demand. SK Hynix currently dominates the HBM chip market, with an estimated market share of over 80% in HBM3 and advanced HBM products for Nvidia.
As Samsung strives to establish itself in this competitive landscape, the company’s shares have declined by 7% this year, while SK Hynix and Micron have experienced gains of 17% and 14% respectively.
FAQ:
Q: What is high bandwidth memory (HBM)?
A: High bandwidth memory (HBM) is a technology used in memory chips to provide high-speed data transfer and increased bandwidth, making it suitable for applications such as artificial intelligence.
Q: What is the non-conductive film (NCF) chip making technology?
A: Non-conductive film (NCF) is a chip manufacturing technique that enables the stacking of multiple layers of chips in a compact high bandwidth memory chipset. However, it can result in production issues and weaknesses in adhesive materials.
Q: What is the mass reflow molded underfill (MR-MUF) method?
A: Mass reflow molded underfill (MR-MUF) is an alternative chip making technique that addresses the weaknesses of non-conductive film (NCF). It improves production yields and allows for more efficient chip stacking.
Sources:
– [Reuters](https://www.reuters.com/)
FAQ:
Q: What is high bandwidth memory (HBM)?
A: High bandwidth memory (HBM) is a technology used in memory chips to provide high-speed data transfer and increased bandwidth, making it suitable for applications such as artificial intelligence.
Q: What is the non-conductive film (NCF) chip making technology?
A: Non-conductive film (NCF) is a chip manufacturing technique that enables the stacking of multiple layers of chips in a compact high bandwidth memory chipset. However, it can result in production issues and weaknesses in adhesive materials.
Q: What is the mass reflow molded underfill (MR-MUF) method?
A: Mass reflow molded underfill (MR-MUF) is an alternative chip making technique that addresses the weaknesses of non-conductive film (NCF). It improves production yields and allows for more efficient chip stacking.
Suggested related links:
– SK Hynix (SK Hynix’s official website)
– Micron Technology (Micron Technology’s official website)
– Nvidia (Nvidia’s official website)
– Reuters (Source of the article)
The source of the article is from the blog portaldoriograndense.com