Samsung's Bold Supply Chain Shake-Up Aims to Lead in Semiconductor Packaging Innovation

Samsung Electronics is reportedly undertaking a major overhaul of its advanced semiconductor packaging supply chain in a bid to enhance competitiveness in the cutting-edge technology market. Industry sources indicate that Samsung intends to reassess its existing systems and establish a new supply chain, which will include a comprehensive re-evaluation of material, component, and equipment suppliers.

This strategic move is primarily aimed at bolstering Samsung's position in the field of advanced packaging, a critical technology for semiconductor products like High Bandwidth Memory (HBM). By stacking DRAM chips and converting them into HBM through packaging, efficient data processing can be achieved. HBM, alongside Graphic Processing Units (GPU) or AI accelerators, handles substantial data volumes, with packaging technology serving as the crucial link. In the age of artificial intelligence, the role of packaging technology becomes pivotal for semiconductor competitiveness.

Samsung is reportedly working to break away from its closed system, offering rival equipment suppliers a chance to provide their technology, and even creating opportunities for competitors' partner companies to engage in collaborative technology development. The company prioritizes "performance" when selecting equipment, regardless of existing business relationships. Notably, Samsung is even considering returning previously purchased equipment to adhere to this new evaluation policy.

In semiconductor equipment development and procurement, Samsung plans to transition from a "one-to-one" to a "one-to-many" model. Previously, Samsung's Joint Development Program (JDP) involved purchasing equipment from a single evaluated company. Under the new model, expected to roll out by 2025, multiple JDP candidates may be selected, enabling more diverse collaborations.

This shift could have significant implications for the industry, as the market for HBM is currently dominated by Korean firms SK Hynix and Samsung, with Micron Technology from the US also holding market share. Samsung's restructuring plans are poised to intensify market competition, driving technological advancement and innovation within the semiconductor packaging sector.