Samsung, SK Hynix Vie for Dominance in Nvidia's HBM4 Chip Supply Race

Samsung Electronics and SK Hynix are competing to secure HBM4 for Nvidia's next-generation AI accelerator 'Vera Rubin,' aiming to preempt the market for the 6th generation High Bandwidth Memory (HBM4), essential for AI computing. The 6th generation HBM, 'HBM4' and 'HBM4E,' is the key technology shaping this year's semiconductor market and is drawing attention as the core memory for Nvidia's ambitiously pursued next-generation AI accelerator 'Vera Rubin' (Rubin).

Samsung Electronics and SK Hynix kicked off their race to secure supply for Nvidia's next-generation AI accelerator by unveiling HBM4-related technologies at Nvidia's annual event, 'GTC 2026,' held in the U.S. in March. However, as potential delays for the accelerator's launch have been raised, the timeline for the two companies' HBM4 competition is also expected to be pushed back. The HBM4 market competition, initially anticipated to gain full momentum with Rubin's launch in the second half of this year, is likely to be somewhat delayed due to technical challenges such as the accelerator's power consumption and cooling system optimization, leading to launch postponements.

With the HBM4 commercialization timeline pushed back, HBM3E is likely to remain the dominant memory in the market throughout the second half of this year. This scenario is expected to favor SK Hynix, which held a 57% market share in the HBM3E market as of the fourth quarter of last year.

As the HBM4 commercialization timeline has been slightly delayed, Samsung Electronics has gained an opportunity to focus on securing stable yields without being rushed by the speed competition. This strategic advantage can be leveraged to narrow the market share gap with SK Hynix, with whom it has lagged somewhat. Samsung Electronics began mass production shipments of HBM4 in February this year, and at GTC in March, it showcased 'HBM4E,' the 7th generation HBM, signaling its focus on technological development. As of April, Samsung Electronics aims to increase the initial yield of its 12-layer HBM4 product from 60% to over 85% by the end of the year. SK Hynix announced in February last year that its yield for the 12-layer HBM4 test had exceeded 70%.

Industry insiders believe that future competition will hinge on securing stable yields capable of supplying the required volumes to customers on time. Competitiveness in the HBM4 market will depend on which company achieves a higher rate of good products. As this directly impacts the performance of customers' AI accelerators, both companies are focusing all their efforts on yield improvement.