Samsung, SK hynix dramatically scaling up HBM production to meet rising demand, recent Nvidia deals

An aerial view of Samsung Electronics' Pyeongtaek chip complex in Gyeonggi [SAMSUNG ELECTRONICS]

[NEWS ANALYSIS] 
 
Samsung Electronics and SK hynix, the world’s two largest memory chipmakers, are increasing semiconductor production as demand surges across the board — from HBM to more commoditized chips like Double Data Rate (DDR) and NAND-based solid-state drives (SSDs).
 
Samsung’s HBM production capacity will likely expand by 50 percent in 2026 compared to the year before, according to multiple domestic media reports, to prepare for massive orders from its top client, Nvidia.
 
The Suwon, Gyeonggi-based chipmaker projected a potential ramp-up in production and construction of manufacturing facilities in its latest conference call in October of last year.
 
“We are internally reviewing the possibility of expanding HBM production,” said Kim Jae-june, vice president of memory business at Samsung Electronics. 
 

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To realize the scale-up, Samsung announced plans to invest 60 trillion won ($41.5 billion) in its upcoming P5 factory in Pyeongtaek, Gyeonggi, following a meeting with President Lee Jae Myung and leaders of major conglomerates in November. The investment is roughly double that of each of Samsung's previous Pyeongtaek facilities. 
 
Samsung confirmed that P5 construction broke ground in November of last year, with operation commencement set for 2028. News also broke that the construction project for the last chip factory for the Pyeongtaek cluster, P6, is also moving forward. However, a company spokesperson said plans for P6 remain “unconfirmed.”
 

Samsung Electronics Executive Chairman Lee Jae-yong, center, inspects the company's semiconductor R&D center in Giheung, Gyeonggi, on Dec. 22, 2025. [SAMSUNG ELECTRONICS]

 
A Pyeongtaek city official familiar with the matter said Samsung is receiving active administrative support to expedite the P5 construction process.
 
“Because the P-series facilities are located within a designated industrial complex, any revisions or additional requirements related to construction typically require lengthy approvals — often taking three to four months,” the official said. “We are working to shorten that timeline as much as possible by facilitating coordination among relevant departments and consultations with Gyeonggi Province.”
 

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The Pyeongtaek campus, currently operates four fabs, P1 through P4. Samsung is projected to add around 60,000 wafers per month of DRAM capacity at P4 through the second quarter of 2026, according to KB Securities.
 
Reports said that Samsung received top marks in Nvidia’s internal testing for sixth-generation HBM (HBM4), which will be used in Nvidia’s next-generation Rubin processors, outperforming rivals SK hynix and Micron.
 
Samsung’s HBM4 achieved a per-pin data transfer speed of 11 gigabits per second (Gbps), exceeding Nvidia’s standard requirement of 10 Gbps for its Rubin platform.
 
“Internally, there is a palpable sense of excitement, and I believe there is broad consensus that the product itself is highly competitive,” a Samsung Electronics source said.
 
Per-pin data transfer speed measures how fast each individual connection between a memory chip and a processor can transmit data. In HBM, even modest improvements at the per-pin level can translate into significant performance gains. Nvidia has been particularly focused on raising this metric as it competes with AMD’s upcoming MI450 processor, which is also expected to be released in the latter half of this year.
 
Until the end of 2026, HBM wafer monthly output is expected to reach 250,000 units, which is a more than 47 percent jump compared to the current 170,000 level.
 
“Samsung’s HBM bit shipments in 2026 are expected to triple year on year to 11.2 billion gigabits, with HBM4 accounting for roughly half of total shipments,” said KB Securities analyst Kim Dong-won. Kim added that Samsung’s HBM market share is forecast to surge to 35 percent next year, more than doubling from an estimated 16 percent in 2025.
 

A rendering of SK hynix's M15X chip plant in Cheongju, North Chungcheong [SK HYNIX]

 
For SK hynix, the M15X facility, which has received more than 20 trillion won in investment, will operate two clean rooms, which refers to tightly controlled manufacturing spaces for chip production. The first cleanroom began equipment installation in October of last year, which is being followed by trial operations into mass production by February, while the second cleanroom is to be completed by year-end. Full utilization of the plant is projected by mid-2027, with monthly output estimated at around 50,000 wafers.
 
SK hynix also forecast an increase in infrastructure investment in October of last year, reflecting preparations for the Yongin chip cluster and Indiana HBM packaging facility. SK Group Chairman Chey Tae-won previously stated in November of last year that investment in the Yongin complex alone, could be worth 600 trillion won, which is more than four times the 128 trillion won figure first set by the company. 

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]