Samsung Electronics (005930.KS) and SK hynix (000660.KS) are accelerating development of high-capacity, high-performance memory products to succeed high bandwidth memory (HBM), as global big tech companies continue to increase AI infrastructure investment despite concerns over an AI investment bubble.
Samsung Electronics announced Wednesday through its semiconductor newsroom that it has developed SOCAMM2, an LPDDR-based server memory module specialized for AI data centers, and is currently supplying samples to customers. SOCAMM is a next-generation DRAM module based on LPDDR DRAM, a standard that Nvidia is independently promoting. It offers more than double the bandwidth and over 55% lower power consumption compared to conventional RDIMM.
Samsung has reportedly worked closely with Nvidia from the early development stage, entering the customer sample phase faster than competitors. If mass production proceeds smoothly, Samsung's SOCAMM2 is expected to be installed in Nvidia's next-generation AI chip "Vera Rubin."
SK hynix announced that its industry-first 256GB DDR5 RDIMM, a high-capacity server DRAM module based on 10-nanometer-class fifth-generation (1b) 32Gb technology, has passed Intel's data center certification process. Servers equipped with this product achieve 16% better inference performance and up to 18% lower power consumption compared to those using existing products. The company plans to secure leadership in the rapidly growing fifth-generation DDR5 DRAM market for servers alongside Intel, the world's leading server CPU maker.
Industry analysts say the memory industry structure itself is shifting to favor suppliers after Micron, often called the industry's "earnings bellwether," announced surprise third-quarter results Wednesday. Rosy earnings forecasts are also emerging. Daishin Securities and Kiwoom Securities projected Samsung Electronics' consolidated operating profit for next year at 110 trillion won and 107.6 trillion won ($79 billion), respectively. iM Securities and Mirae Asset Securities forecast SK hynix's operating profit for the same period at 93.8 trillion won and 91.1 trillion won, respectively. Combined, the annual operating profit forecasts for both companies exceed 200 trillion won.
"DRAM supply shortages will continue, maintaining the price increase trend through the first quarter of next year," said Kim Dong-won, analyst at KB Securities. "The expansion of HBM4 shipments, expected to carry a 40-50% price premium starting in the first half of next year, will further boost earnings momentum."
