Samsung Delays HBM4 Production to 2026 Amid Yield Challenges, as SK Hynix Strengthens AI Memory Lead

Samsung's HBM4 Production Delay

Samsung Electronics has announced a delay in the mass production of its next-generation high-bandwidth memory (HBM) chips, pushing the timeline to 2026. This decision comes as the company grapples with yield challenges in its DRAM redesign efforts. Initially planned for the second half of 2025, the production of 12-high HBM4 modules based on 10nm-class sixth-generation 1c DRAM has been postponed 1

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Source: TweakTown

The company now aims to deliver early samples to key customers in the third quarter of 2025, with full production readiness anticipated in the fourth quarter. Internal testing has shown progress, with limited wafer runs reaching yield rates of around 65% as of early July 2

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Samsung's DRAM Redesign Strategies

Samsung is pursuing two strategies to revise its 1c DRAM:

1. Modifying previous 1a and 1b designs
2. Complete redesign for a new generation of chips

The full redesign approach, resulting in larger chip sizes, has achieved higher production yields but incurs increased costs due to greater wafer usage and development efforts 1

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SK Hynix's Strong Performance

In contrast to Samsung's challenges, SK Hynix reported record quarterly results on July 24, driven by strong demand for HBM and AI-related memory products. The company's Q2 2025 financial highlights include:

• Operating profit: KRW9.21 trillion (US$6.70 billion), up 68% year-over-year
• Sales: KRW22.23 trillion (US$16.16 billion), up 35%
• Net income: KRW6.99 trillion (US$5.08 billion)
• HBM and related DRAM products: 77% of total revenue 1

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SK Hynix's AI-Driven Expansion

SK Hynix is capitalizing on the AI boom to fuel continued growth through the second half of 2025. The company's strategic moves include:

1. Doubling HBM sales in 2025
2. Mass production of HBM3E chips

Source: DIGITIMES

3. Preparing for HBM4 commercial launch in 2026
4. Introducing LPDDR-based server modules and expanding GDDR7 product lineup
5. Cautious investment in NAND memory, focusing on profitability and QLC-based enterprise SSDs 1

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Implications for the AI Memory Market

The contrasting fortunes of Samsung and SK Hynix highlight the intense competition in the AI chip market. Samsung's delay in HBM4 production could potentially impact its market position, while SK Hynix's strong performance and aggressive expansion plans position it favorably in the rapidly growing AI memory sector.

As both companies invest heavily in next-generation memory technologies, the race to meet the increasing demand for high-performance AI chips is likely to intensify. The success of these efforts will play a crucial role in shaping the future of AI hardware and could have significant implications for the broader tech industry.