Accelerating to catch up with SK Hynix! Samsung's HBM4 reportedly passed internal testing and is ready to supply NVIDIA

Samsung Electronics has made key progress in the high bandwidth memory (HBM4) field, with its chips having passed production readiness certification (PRA) and are ready to supply NVIDIA. On December 2nd, according to media reports, Samsung Electronics recently completed the production readiness certification (PRA) for HBM4. The chip has met Samsung's internal mass production standards, and the company plans to accelerate its entry into NVIDIA's supply chain. If it obtains supply qualifications from NVIDIA, Samsung Electronics' position in the AI chip supply chain will be significantly enhanced. NVIDIA CEO Jensen Huang previously stated that he does not rule out the possibility of collaborating with Samsung Electronics. He emphasized, "Samsung's HBM memory chip has passed testing, and cooperation is progressing smoothly." Previously, in HBM4 supply negotiations, SK Hynix had taken a leading position, successfully raising the chip price by over 50% to more than $500 each, further consolidating its pricing advantage in the high-end storage market. Samsung Electronics Accelerates Catch-Up, Positive News from Internal Testing Samsung Electronics has recently completed the production readiness certification (PRA) for HBM4. As the final step in Samsung's internal quality certification process, PRA is seen as a key milestone for product mass production, indicating that its HBM4 has met the company's internal mass production standards. The industry generally believes that passing the PRA will positively impact its subsequent final quality testing (Qualtest) by NVIDIA and accelerate its entry into NVIDIA's supply chain. Samsung Electronics initially planned to complete the performance evaluation of HBM4 and start mass production within the year, but shifted focus to design optimization due to previously failing NVIDIA's quality tests, emphasizing improvements in key indicators such as thermal performance. Recently, the company has significantly narrowed the technological gap with competitors by optimizing the maturity of DRAM based on the 1c node and enhancing the performance of the base chip with 4nm logic technology. It is noteworthy that the manufacturing of HBM4 relies on the complex integration of various technologies, including DRAM processes, base chip design, and TSV alignment accuracy, all of which determine the chip's heat control and energy efficiency levels. Samsung Electronics' breakthrough is expected to change the current competitive landscape of the HBM market. Currently, NVIDIA is actively ensuring HBM supply to prepare for the mass production of its next-generation GPU "Rubin" in the second half of next year, providing an important market window for Samsung Electronics. SK Hynix Seizes Opportunity, HBM4 Price Increases by Over 50% Recognized by NVIDIA SK Hynix has demonstrated strong bargaining power in its HBM4 supply negotiations with NVIDIA. The company successfully raised the HBM4 price to the "mid-range of $500," an increase of over 50% compared to previous generation products. This price adjustment fully reflects its advantageous position in the high-end HBM market. Technological upgrades support significant price increases. HBM4's data transmission channels (I/O) reach 2048, double that of the previous generation HBM3E. Considering the cost increases brought about by technological advancements, SK Hynix has outsourced the production of its previously self-manufactured base chips to TSMC to optimize the supply chain and control overall costs. Although NVIDIA initially resisted significant price increases and considered the potential for large-scale supplies from Samsung Electronics and Micron, which led to a stalemate in negotiations, the final supply price was still settled at the level proposed by SK Hynix SK Hynix executives emphasized that considering the advancements in technology and input costs, HBM4 has structural factors for significant price increases