Samsung Plans HBM4 Chip Production Next Month for Nvidia Supply
Synopsis
Samsung is preparing to ramp up production of its next-generation HBM4 memory chips early next year, aiming to supply Nvidia’s upcoming AI accelerators, according to people familiar with the matter. Production is set to…
Samsung is preparing to ramp up production of its next-generation HBM4 memory chips early next year, aiming to supply Nvidia’s upcoming AI accelerators, according to people familiar with the matter. Production is set to begin in February 2026 at the company’s Pyeongtaek campus.
The memory chips, which use advanced 16-layer stacks and deliver speeds exceeding 11Gbps, have already passed Nvidia’s qualification tests. This milestone brings Samsung closer to challenging industry leader SK hynix, while rival Micron has fallen behind due to production delays. The timing aligns with Nvidia’s planned launch of its Vera Rubin GPUs in the second half of 2026.
To meet rising demand, Samsung is also expanding its P4 fabrication plant, a move that will support Google’s TPU orders and boost overall chip output by around 50% by the end of the year.
AI Memory Race Heats Up
A late change in Nvidia’s memory specifications is reshaping development timelines across the supply chain. By pushing performance targets above 11Gbps, Nvidia has forced chipmakers to redesign key components.
Samsung says it is making progress. Early production data from research wafers shows yields of around 70% for DDR5 memory and about 50% for next-generation HBM4, levels that suggest the technology is moving closer to mass production. The chips use hybrid bonding to combine advanced DRAM with a 4nm logic base, comfortably exceeding existing industry standards.
To speed up the process, Samsung is also working with partners at an AI Megafactory equipped with more than 50,000 Nvidia GPUs, a setup designed to accelerate testing and qualification ahead of large-scale deployment.
Capacity Ramp Matches Surging Demand
Samsung is moving quickly to lock in its lead in next-generation memory. Its Pyeongtaek P4 site will begin adding about 60,000 wafers a month from the second quarter of 2026, strengthening supply just as demand for high-bandwidth memory accelerates.
That expansion comes as Samsung has already sold out its HBM4 production for the year, putting pressure on competitors. SK hynix is preparing to ramp production at its M16 plant in February, while Micron risks falling further behind after redesign issues that could delay its plans by as much as nine months.
Shortages are already being felt across the market. Prices for HBM3E memory have climbed around 20%, a move that highlights how tight supply could translate into a sharp jump in profits for memory makers by year-end.
Competitive Landscape Shifts
After stumbling in the HBM3E cycle, Samsung is beginning to catch up. The company’s progress comes at a time when Nvidia is pushing for multiple suppliers for its next Rubin platform, especially as Blackwell-powered systems are deployed more widely.
Investors welcomed the development. Samsung shares jumped roughly 5% after reports that its memory had passed qualification tests. Analysts now say the next battle will be over long-term supply contracts, which could decide which chipmakers dominate AI infrastructure spending in 2026.
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