Samsung leverages memory business for AI chip orders
Samsung Electronics is reportedly winning large orders from global technology firms by leveraging its leadership in the memory semiconductor business. The company is capitalizing on surging demand for high-performance memory in AI infrastructure. Samsung's "turnkey" model, which integrates design and manufacturing, is proving attractive amid persistent shortages of high-bandwidth memory (HBM).
- To execute its "turnkey" strategy, Samsung established an Advanced Package (AVP) business team in late 2022 to provide one-stop solutions combining memory, logic, and 2.5D and 3D packaging. This approach aims to unify memory and logic chips into faster, more efficient packages through a technique called heterogeneous integration. - Samsung's foundry is a key player in the transition to Gate-All-Around (GAA) transistor architecture, which enables higher performance and lower power consumption compared to the previous FinFET technology. The company began producing its first 3nm GAA-based chips in 2022 and plans to start mass production of its 2nm process in 2025. - In the crucial High-Bandwidth Memory (HBM) market, Samsung held about a 27% share last year, second to SK Hynix's 55%. However, Samsung has recently begun shipping its latest HBM4 to customers, including Nvidia for its next-generation "Vera Rubin" AI accelerator, signaling a move to regain market leadership. - Despite its strengths, Samsung's foundry business holds a distant second place in global market share. As of the third quarter of 2025, TSMC dominated with a 71% share, while Samsung held 6.8%. - The company is making significant capital investments to support its AI chip ambitions, including a plan to invest $310 billion over five years in AI technology and semiconductor manufacturing. This includes building a new Pyeongtaek Plant 5 for HBM and server DRAM, scheduled to begin operations in 2028. - Samsung is also expanding its AI infrastructure and supply chain presence in the United States, considering a $7 billion investment in an advanced packaging plant in Taylor, Texas. - The company's turnkey service is reportedly a key factor in securing major clients. For example, Samsung is supplying HBM3E products for AMD's MI350 AI accelerator and is expected to secure the contract for the upcoming MI450 chip for OpenAI. - Samsung is developing next-generation packaging technologies, such as the bump-less X-Cube, expected in 2026, to process more data and further integrate logic and memory. The advanced packaging market is projected to grow at a high rate, with 2.5D and 3D packages expected to grow by over 14% annually.
