Samsung's HBM4 Chips Near Final Approval, Poised to Redefine Memory Market

Samsung Electronics is on the brink of certifying its sixth-generation high-bandwidth memory, HBM4, with potential approval by Nvidia by year's end. Industry experts predict Samsung's success with HBM4 could drive significant profit growth, with expected operating profits reaching historic levels due to market shifts and technological advancements.

Samsung Electronics is reportedly in the final stages of receiving significant certification for its latest high-bandwidth memory technology, HBM4. According to The Korea Herald, the tech giant is awaiting potential year-end approval from Nvidia. Having successfully cleared production readiness hurdles, the firm is now focusing on sample distribution to major clients for testing.

Kim Dong-won, Research Head at KB Securities, highlighted that no quality issues have emerged with HBM4 samples, which leverage 1c DRAM technology. This success positions Samsung to meet demanding specifications from tech leaders such as Google and Nvidia. Industry forecasts suggest a formal approval could materialize this year, enhancing Samsung's market prospects.

Analysts believe HBM4 could overtake its predecessor, HBM3E, by late next year, aligned with Nvidia's future AI processor plans. However, some caution that complex manufacturing processes might push certifications into next year. Samsung's projected performance has fueled optimistic forecasts for substantial future profit growth, particularly within its semiconductor division.

(With inputs from agencies.)