Global competition in the high-bandwidth memory (HBM) market is intensifying with investments in advanced packaging facilities. Samsung Electronics is expanding its HBM packaging production in Onyang, South Chungcheong Province, while SK Hynix and U.S.-based Micron are also increasing their production bases domestically and internationally.
According to industry sources on November 12, global memory companies are ramping up investments in advanced packaging to boost HBM production capacity. HBM is a semiconductor that vertically stacks multiple DRAM chips. While increasing the number of layers enhances capacity and performance, it also raises the risks of heat generation and bonding defects. The importance of post-processing technology, which ensures stable stacking and connections of chips, is becoming more pronounced as it affects production yield and supply capacity.
Samsung is accelerating its market share acquisition with HBM4. In the third quarter of this year, HBM4 sales surged more than threefold compared to the previous quarter, accounting for 60% of total HBM sales. According to market research firm Counterpoint Research, SK Hynix held a 50% share of the global HBM market in the second quarter, followed by Samsung Electronics at 33% and Micron at 18%. Recently, forecasts have emerged suggesting that Samsung could secure the top position in the HBM market next year.
To maintain its market leadership, SK Hynix is expanding its production capacity. The company is constructing an advanced packaging plant, 'P&T7,' in Cheongju, investing 19 trillion won, with completion targeted for the end of 2027. Additionally, it has begun construction of an HBM advanced packaging plant in Indiana, USA, with an investment exceeding $4 billion. SK Hynix has recently raised its HBM4 yield targets, stating that customer orders exceed available supply by more than double.
Micron also commenced operations at its Advanced Packaging and Testing Plant 2 (AATT2) in Taichung, Taiwan, last month. In Singapore, it is building an HBM packaging plant with an investment of approximately $7 billion, with production capacity expansion expected to take effect next year. Micron has reported that customer reservations for HBM production capacity are already completed through 2027.
Samsung is simultaneously expanding its domestic production facilities and developing technology overseas. In September, it opened an advanced packaging research center, the Advanced Package Lab (APL), in Yokohama, Japan. The company plans to invest 40 billion yen over the next five years to develop next-generation packaging technologies. Lee Jae-yong, Vice Chairman of Samsung Electronics, visited APL on November 1 to review the status of technology development and discuss collaboration with Japan's materials, components, and equipment industries.
Samsung is also focusing on customized HBM development that integrates memory, foundry, and advanced packaging. With HBM4, the role of the base die, which controls data flow, has become more significant, making the integration of design and production technology crucial. Samsung's strategy is to combine its own foundry and memory technologies to respond effectively.
An industry insider noted, "Given that Samsung Electronics has proactively responded to the mass production and supply expansion of HBM4, it is likely to gain an advantage in future market share. The key will be how quickly they can increase production volumes and expand supply to new customers."
* This article has been translated by AI.
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