Samsung Electronics is gearing up to embrace chip-making technology endorsed by SK Hynix in the highly competitive race to manufacture high-end High Bandwidth Memory (HBM) chips for artificial intelligence (AI), as reported by Reuters on March 13. HBM has emerged as a crucial component in empowering AI processors, offering faster data processing capabilities compared to traditional dynamic random access memory (DRAM). SK Hynix is reportedly investing US$1 billion in key AI memory chip technology, focusing on advanced chip packaging techniques, according to Bloomberg's report on March 7.
While both SK Hynix and Micron Technology have entered partnerships with AI chip leader Nvidia to secure the latest chip technology, Samsung has notably refrained from such collaborations. The delay in Samsung's participation is attributed to its commitment to non-conductive film (NCF) technology, which has resulted in production challenges. Despite Samsung's hesitancy, Micron, a common rival to Samsung and SK Hynix, has disclosed its partnership with Nvidia, planning to mass-produce the latter's HBM chips in the second quarter of this year. However, SK Hynix maintains a dominant position, securing 54% of the total HBM industry.
In addition to the United States and Korea, Taiwan plays a pivotal role in the semiconductor industry. According to the Market Intelligence & Consulting Institute (MIC), a division of the Institute for Information Industry (III), projections indicate that the Taiwanese semiconductor industry's shipment value is set to reach approximately NT$4.17 trillion (US$135.3 billion; US$1 = NT$30.8) in 2024, reflecting a robust year-on-year increase of 13.6%. The memory sector is expected to contribute significantly, with an anticipated shipment value of NT$152.2 billion (US$4.9 billion) in the same year.