Samsung Electronics announced on Thursday that it has started mass production of next-generation memory chips designed to power artificial intelligence, claiming an “industry-leading” breakthrough.
The high-bandwidth HBM4 chips are a crucial component for scaling the massive data centres driving the global AI boom. US tech giant Nvidia, the world’s most valuable company is expected to be one of Samsung’s main buyers.
Samsung said in a statement that it had “begun mass production of its industry-leading HBM4 and has shipped commercial products to customers,” adding that the development “marks a first in the industry, securing an early leadership position in the HBM4 market.”
The company said the new chips are more than 40% faster than previous models, exceeding industry standards for processing speed and meeting “escalating demands for higher performance.”
Shares of Samsung Electronics rose more than 6% in afternoon trading on South Korea’s stock exchange following the announcement.
The South Korean government has pledged to make the country one of the world’s top three AI powers, alongside the United States and China. Samsung and fellow local chipmaker SK hynix are already leading producers of high-performance memory chips, and both have raced to begin HBM4 production.
According to Taipei-based research firm TrendForce, global memory chip revenue is expected to exceed $840 billion by 2027. Samsung, which posted record quarterly profits earlier this year, has earmarked billions to expand production facilities, upgrade existing lines, and transition to advanced manufacturing processes to meet surging demand.
Nvidia, whose hardware dominates AI computing, remains a primary driver of demand for high-end memory chips. Since the launch of OpenAI’s ChatGPT in late 2022, Nvidia’s products have become highly sought after, with other tech giants like Apple, Microsoft, and Amazon also developing AI-focused chips, though they face competition in securing supply.
Industry analysts have warned that the surge in AI-focused chip production could lead to higher retail prices for consumer electronics worldwide.
AFP
