Samsung Breaks Into Nvidia’s AI Memory Supply Chain with HBM4 Chips

TLDR

• Samsung Electronics will start mass producing HBM4 memory chips for Nvidia in February 2026 after completing final qualification tests
• The South Korean chipmaker submitted initial samples to Nvidia in September and has now reached the final approval stage
• Micron Technology has already sold out its entire 2026 HBM supply and expects to maintain 20%+ market share
• All three major suppliers face tight supply conditions, limiting potential market share changes among competitors
• The three leading memory manufacturers have added $900 billion in market value since September due to AI demand

Samsung Electronics is moving forward with plans to manufacture HBM4 memory chips for Nvidia starting next month. The company has completed the qualification process after providing test samples to the chipmaker in September.

Production is scheduled to begin in February 2026. Samsung will be ready to ship the chips shortly after production starts, though specific delivery dates have not been confirmed.

Samsung shares rose 3.2% in Seoul trading before giving back some gains. SK Hynix stock declined by approximately the same amount on the news.

High-bandwidth memory chips are essential components in modern AI processors. These specialized chips allow AI accelerators to handle massive data processing requirements.

Samsung is working to catch up with competitors SK Hynix and Micron Technology in the AI memory sector. SK Hynix currently serves as Nvidia’s main supplier for advanced memory chips used in premium AI accelerators.

The Korea Economic Daily reported Samsung will supply HBM4 chips to both Nvidia and Advanced Micro Devices starting next month. Investors are watching to see if Samsung can provide components for Nvidia’s forthcoming Rubin processors.

Market Dynamics Favor All Suppliers

The entry of Samsung into Nvidia’s supply chain does not necessarily threaten Micron’s business prospects. Demand for HBM chips remains extremely strong across the industry.

Companies building AI processors are purchasing all available HBM chips from suppliers. This creates a seller’s market where supply constraints benefit all manufacturers.

William Blair analyst Sebastien Naji recently initiated coverage on Micron with an Outperform rating. His research note highlighted that Micron has already sold its entire 2026 production capacity.

Naji projects Micron will hold market share in the low-20% range through 2027. He expects the company’s HBM revenue to increase nearly fourfold over two years.

By 2027, Micron could capture approximately $20 billion in HBM revenue. This growth stems from the higher profit margins HBM chips generate compared to standard memory products.

Micron’s stock price has increased more than fourfold over the past year. The surge reflects investor enthusiasm about HBM demand driven by AI applications.

Supply Remains Constrained Across Industry

Tight supply conditions affect Samsung, SK Hynix, and Micron equally. This situation limits how much market share can shift between the three manufacturers.

The combined market value of the three memory chip leaders has grown by roughly $900 billion since early September. This reflects the broader semiconductor industry’s focus on AI-related components.

Samsung and SK Hynix will discuss their HBM4 development during earnings calls scheduled for Thursday. These updates will provide more details about production timelines and customer relationships.

AI processor demand continues to outpace available memory chip supply. This imbalance ensures strong sales for all three major HBM manufacturers regardless of individual market share fluctuations.

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