Samsung Advances HBM4 Chip Supply for 2026 AI Expansion

Samsung Electronics Advances in HBM4 Chip Production

Samsung Electronics has announced progress in its next-generation high-bandwidth memory (HBM4) chip production, with plans to boost output by around 50% through late 2026. The company is competing with rivals SK Hynix and Micron to supply HBM4 chips to NVIDIA for its upcoming AI accelerators. The demand for advanced memory is driven by the growing complexity of AI models and the need for higher bandwidth solutions.

Samsung's HBM4 production will begin in February 2026 at its Pyeongtaek campus in South Korea according to company announcements. The chips will support NVIDIA's next-generation Rubin AI processors and are expected to be used in data centers. The company has also received positive feedback from NVIDIA in recent system-in-package tests.

SK Hynix and Micron are also accelerating their HBM4 development schedules to meet NVIDIA's request for 16-Hi HBM4 memory chips by late 2026. The 16-Hi design requires wafer thickness to be reduced to about 30 micrometers, presenting technical challenges for manufacturers. Samsung is exploring hybrid bonding techniques to improve yield rates and manufacturing efficiency as reported by industry analysts.

Why Did This Happen?

The shift to HBM4 is driven by the need for higher bandwidth and data processing capabilities in AI workloads. NVIDIA has pushed for a faster transition to 16-Hi HBM4, even before the full commercial rollout of 12-Hi HBM4. This has intensified competition among memory makers to secure supply contracts.

Samsung's efforts to refine its HBM4 manufacturing process have been supported by internal testing that showed data transfer speeds reaching 11.7Gbps. The company aims to regain its position in the high-performance memory market, where SK Hynix has historically held a stronger presence.

How Did Markets React?

Samsung's shares rose more than 5% in early trading after news of its HBM4 production plans emerged according to market reports. Analysts at Morgan Stanley project that Samsung's memory profits could rise more than 300% in 2026 as financial analysts have noted. The company's progress in HBM4 production has been praised by industry customers, with some calling it a sign that 'Samsung is back' as reported by business news outlets.

The broader semiconductor market is also reacting to HBM4 demand. SK Hynix and Micron are expanding production capacities to meet the growing needs of AI chip designers. Memory prices for HBM3E have even seen a near-20% increase, as demand continues to outpace supply.

What Are Analysts Watching Next?

The next major milestone will be the commercial rollout of HBM4 chips by Samsung, SK Hynix, and Micron in early 2026. Analysts are monitoring yield rates and production timelines, as 16-Hi HBM4 manufacturing is more complex and requires tighter process controls. Samsung's use of hybrid bonding technology is seen as a key differentiator.