Accelerating to catch up with SK Hynix! Samsung's HBM4 reportedly passes internal tests, ready to supply NVIDIA.

Samsung Electronics has made a key breakthrough in the field of high-bandwidth memory (HBM4), with its chips passing Production Readiness Approval (PRA) and preparing to supply Nvidia.

On December 2nd, according to media reports, Samsung Electronics recently completed Production Readiness Approval (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 Samsung Electronics obtains the qualification to supply Nvidia, its status in the AI chip supply chain will be significantly upgraded. 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 chips have passed testing, and cooperation is progressing smoothly.”

Previously, in HBM4 supply negotiations, SK Hynix took the lead, successfully raising the unit price of chips by more than 50% to over $500 each, further solidifying its pricing advantage in the high-end memory market.

Samsung Electronics Accelerates, Positive News from Internal Testing

Samsung Electronics has recently completed Production Readiness Approval (PRA) for HBM4. As the final step in Samsung’s internal quality certification process, PRA is considered a key milestone for the mass production of a product and means that its HBM4 chip has met the company’s internal standards. The industry generally believes that passing PRA will have a positive impact on the subsequent Nvidia final quality test (Qualtest) and accelerate the process of entering Nvidia’s supply chain.

Samsung Electronics initially planned to complete HBM4 performance evaluation and launch mass production within this year, but after failing Nvidia’s quality test, it shifted focus to design optimization, targeting improvements in key indices such as thermal performance. Recently, by optimizing maturity based on the 1c node DRAM and combining 4-nanometer logic process enhancements to boost fundamental chip performance, the company has notably narrowed its technological gap with competitors.

It is worth noting that the manufacturing of HBM4 relies on a complex integration of DRAM process, base chip design, and TSV alignment accuracy, among various technologies, together determining the chip’s thermal control and energy efficiency. Samsung Electronics’ breakthrough is expected to change the competitive landscape of the current HBM market. At present, 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 opportunity for Samsung Electronics.

SK Hynix Seizes the Lead, HBM4 Price Surges over 50% with Nvidia’s Endorsement

SK Hynix demonstrated strong bargaining power during HBM4 supply negotiations with Nvidia. The company successfully raised the price of HBM4 to the “mid-$500” range, a rise of more than 50% compared to previous-generation products. This price adjustment fully reflects its dominant position in the high-end HBM market.

Technical upgrades have provided support for substantial price increases. HBM4’s data transfer channels (I/O) have reached 2,048, twice as many as the previous generation HBM3E. Considering the cost increases brought by technological advancement, SK Hynix has outsourced its previously self-produced base chips to TSMC, optimizing its supply chain and controlling overall costs.

Despite Nvidia’s initial resistance to the substantial price increase and having considered possible large-scale supplies from Samsung Electronics and Micron in the future, causing the negotiations to stall for a time, the final supply price was settled at the level proposed by SK Hynix. SK Hynix executives emphasized that, considering process improvements and input costs, HBM4 has a structural basis for substantial price increases.

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