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[Exclusive] Samsung to Expand DRAM Capacity for HBM4 by 120,000 Wafers per Month

Samsung Electronics is embarking on an initiative to increase its new DRAM production capacity by nearly 20% this year, centered around its Pyeongtaek Plant 4 (P4). The core of this expansion is to significantly boost the production of 6th-generation 10nm-class (1c) DRAM, which serves as the primary material for 6th-generation High Bandwidth Memory (HBM4). This move is interpreted as a strategic plan for aggressive facility investment, driven by a sharp recovery in the company's HBM4 technical competitiveness and the ever-increasing demand for DRAM from Artificial Intelligence (AI) customers.

According to industry sources on the 5th, Samsung Electronics has established a strategy to build a new DRAM production line at 'P4' in Pyeongtaek, Gyeonggi Province—the company's latest semiconductor factory—capable of producing 100,000 to 120,000 wafers per month by the first quarter of next year. This line will specifically house the 1c DRAM production infrastructure used for HBM4.

HBM is a type of memory created by vertically stacking multiple DRAMs. It is faster and has a larger capacity than single DRAM units, making it a highly sought-after product in the AI industry, which requires complex computations.

HBM4 is the latest HBM product that Samsung Electronics will supply to AI semiconductor companies such as NVIDIA and AMD starting this year. Samsung produces HBM4 by vertically stacking 12 units of 1c DRAM, the most advanced product currently available.

Industry experts evaluate Samsung’s establishment of a new 1c DRAM line for HBM4 as a substantial investment. To date, Samsung Electronics possesses lines capable of producing 660,000 DRAM wafers per month. Adding up to 120,000 wafers of new capacity would mean a maximum 18% increase in DRAM production capability within a single year.

The production ratio of 1c DRAM for HBM4 is also expected to rise. Samsung Electronics is known to have established a production line for 60,000 to 70,000 1c DRAM wafers monthly as of last year. If the lines are completed as planned, the capacity for 1c DRAM for HBM4 will reach nearly 200,000 wafers per month, meaning HBM4-specific DRAM alone will account for 25% of the total production process.

Furthermore, the 4nm process line at S5, the Pyeongtaek foundry plant that manufactures HBM4 base dies, is reportedly operating in "full-throttle" mode. Construction on the exterior of 'P5,' currently being built in Pyeongtaek, is also moving busily to align with the timing for semiconductor manufacturing equipment delivery as early as the first quarter of next year.

The company is also reportedly considering expanding the production of general-purpose 1c DRAM used in mobile devices and home appliances. This involves a large-scale process transition to 1c DRAM, primarily at Hwaseong Line 17, where previous generation processes were located.

Samsung Electronics’ decision to significantly strengthen its 1c DRAM production capacity this year stems from growing confidence in its latest technology and the arrival of a memory "super cycle" driven by the expansion of the AI market.

The atmosphere within Samsung Electronics has recently seen a surge in technical confidence. Until last year, the company struggled significantly with the manufacturing of HBM4 and 1c DRAM. Consequently, Vice Chairman Jun Young-hyun, who was appointed as the new head of the Device Solutions (DS) division in 2024, decided on a redesign of the 1c DRAM. This strategy proved successful, leading to a rapid recovery in technology since the first half of last year.

In the HBM4 sector specifically, Samsung recently passed the "qual test" (qualification test) for NVIDIA—the world's leading AI semiconductor company—beating its competitors to become the first to do so, and is now ahead of mass production shipments. Faced with a situation where HBM4 production must be scaled up rapidly, the company has entered the stage of bu[...]

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