Samsung announces HBM yield rate breaks through 70%! CTO Song Jae-hyuk says next-generation DRAM overtakes, chasing hard after SK Hynix.

South Korean semiconductor giant Samsung Electronics has taken another step forward in the race for High Bandwidth Memory (HBM). According to an exclusive report by Korean media outlet Financial News, Samsung Electronics' DS division CTO Song Jae-hyuk revealed during an internal business briefing on June 30 that the reliability test yield for its 7th-generation HBM (HBM4E) has surpassed 70%, approaching the industry's "mature" threshold of 80%.

(Previous context: Wall Street is frantically shouting "Micron is the next Nvidia!" The AI memory shortage briefly pushed Micron's market cap past Meta and Tesla)

(Background supplement: Samsung and SK Hynix receive $1.3 trillion in support from the Korean government! Analysts: AI is a life-or-death battle for nations)

Key Takeaways

• Samsung Electronics CTO Song Jae-hyuk revealed that the reliability test yield for its 7th-generation HBM (HBM4E) has reached over 70%, nearing the industry's "mature yield" threshold of 80%.
• Samsung first mass-produced HBM4 in February this year, publicly disclosed the specifications of HBM4E 12-layer products at the end of May, and shipped samples. HBM4 sales have already exceeded $1.2 billion.
• The next-generation D1d (10nm-class 7th generation) DRAM process is expected to pass the Production Readiness Approval (PRA) in November and will be used for HBM5 and subsequent products.

Samsung Electronics has presented a figure that has caught attention from the outside world. According to an exclusive report by Korean financial media Financial News, Samsung's DS division CTO Song Jae-hyuk confirmed during an internal business briefing on June 30 that the reliability test yield for the company's 7th-generation High Bandwidth Memory HBM4E has already reached over 70%, meaning development has essentially passed the final sprint phase.

HBM4E reliability test yield has reached over 70%. The next-generation 10nm-class 7th generation (D1d) DRAM process holds an advantage over competitors.

HBM4 mass-produced for only 4 months, sales exceed $1.2 billion

Samsung's pace in HBM has clearly accelerated over the past six months. The company first mass-produced its 6th-generation HBM4 in February this year, publicly disclosed the technical specifications of HBM4E 12-layer products at the end of May, and shipped samples to key customers—becoming the first company to send HBM4E samples. By the end of the month, Samsung's HBM4 sales alone had already surpassed $1.2 billion.

For Samsung, which is still catching up, being able to provide actual sales figures is more convincing than any technical slogans. As for the next-generation D1d process, Samsung expects it to pass the Production Readiness Approval (PRA) in November, and it will be applied to HBM5 and subsequent products.

Nvidia's large orders still held by SK Hynix

To understand why Samsung is rushing to disclose its yield figures, one must first grasp the HBM business. HBM (High Bandwidth Memory) is high-speed memory stacked next to AI accelerators. For Nvidia's GPUs to run AI, they rely on HBM to feed data at high speeds, making it one of the most sought-after and profitable components in this AI super cycle.

The problem is that this market has long been dominated by SK Hynix. In the past, SK Hynix held approximately 70% of the market share for supplying HBM3E to Nvidia. For HBM4—the generation paired with Nvidia's next-generation AI accelerator Vera Rubin—supply chain analysis estimates that SK Hynix still holds about 60-70%, Samsung around 25-30%, and Micron fills the rest. Samsung is pushing HBM4E yields higher and accelerating HBM4 shipments in a bid to close the gap with SK Hynix and win back more orders from Nvidia.

Frequently Asked Questions

What is HBM4E? What does Samsung's 70% yield mean?

HBM4E is the 7th-generation High Bandwidth Memory (HBM), stacked next to AI accelerators to feed data at high speed to GPUs. Yield refers to the proportion of good products. Samsung's HBM4E reliability test yield has reached 70%, approaching the industry's 80% maturity threshold, indicating that mass production quality is nearing the level required for large-scale shipments.

Has Samsung caught up to SK Hynix in HBM?

Still catching up. SK Hynix has long dominated HBM supply for Nvidia, holding about 70% of the HBM3E market share. For HBM4 (paired with Nvidia's Vera Rubin), Samsung holds about 25% to 30%. By improving HBM4E yields and accelerating HBM4 shipments, Samsung aims to narrow the gap with SK Hynix and secure more Nvidia orders.