Samsung begins mass production of next-generation AI memory chip

Samsung Electronics on Thursday announced the start of mass production of its next-generation memory chips designed to support artificial intelligence, describing the development as an industry-leading milestone.

The new high-bandwidth HBM4 chips are considered critical for expanding large data centres that drive the rapid growth of AI technologies. US technology firm Nvidia, the world’s most valuable company, is widely expected to be a major customer.
In a statement, Samsung said it had commenced mass production of its HBM4 chips and had already shipped commercial units to clients, noting that the move gives it an early leadership position in the HBM4 market.

Rising global investment in AI data centres has sharply increased demand for advanced high-bandwidth memory chips. Samsung said the new chips deliver more than 40 per cent higher processing speeds than previous models, exceeding current industry benchmarks and meeting growing performance demands.

Following the announcement, Samsung Electronics shares rose by more than six per cent in afternoon trading on the South Korean stock exchange.

South Korea has set a national goal of becoming one of the world’s top three AI powers, alongside the United States and China.

Samsung and local rival SK hynix are already among the leading producers of high-performance memory chips, with both companies racing to begin HBM4 production.

Industry research firm TrendForce projects that global memory chip revenue will climb to a peak of over $840 billion by 2027. Samsung has also reported record quarterly profits this year, driven by strong demand for its advanced memory products.

The company has committed billions of dollars to expanding and upgrading its chip manufacturing facilities to meet rising demand. Meanwhile, Nvidia continues to dominate AI computing hardware, fuelling intense demand for memory chips from suppliers such as Samsung and SK hynix.

Other major technology firms, including Apple, Microsoft and Amazon, have developed AI-focused chips, but many still rely heavily on Nvidia’s hardware. Analysts and manufacturers have cautioned that the strong focus on AI chip production could contribute to higher consumer electronics prices over time.