Samsung May Redesign 1a DRAM to Improve HBM Quality

Samsung Electronics is facing significant challenges, particularly in its semiconductor business. In addition to a slowdown in its foundry operations, concerns are rising about its competitiveness in the high-bandwidth memory (HBM) sector. Industry reports suggest that Samsung may be forced to redesign parts of its 1a DRAM circuitry to strengthen its HBM performance.

Originally, Samsung planned to begin supplying HBM3E to Nvidia in the third quarter of 2024. However, its 8-layer HBM product has not yet passed quality tests, and its 12-layer version may be delayed until the second or third quarter of 2025.

Experts believe the main issue behind these delays lies in Samsung's DRAM technology. Since HBM vertically stacks multiple DRAM chips, its performance heavily depends on the underlying DRAM technology. Samsung introduced EUV (Extreme Ultraviolet) technology into DRAM manufacturing in 2020, making it the first company to do so. However, analysts speculate that Samsung's HBM3E performance challenges may stem from key components in its 1a DRAM technology.

The 10nm-class DRAM has gone through several iterations, from 1x, 1y, 1z to 1a and 1b. Samsung began mass production of 1a DRAM in late 2021, using EUV technology in five layers, whereas its competitor, SK Hynix, only utilized EUV in one layer. Despite this advanced approach, Samsung's method appears to have fallen short of expectations. The use of EUV in DRAM production has reduced the stability of the process, impacting cost efficiency in large-scale production.

Additionally, Samsung's DRAM design, particularly for servers, seems less than ideal, contributing to its later-than-expected launch of DDR5 in this market. In January 2023, SK Hynix became the first to gain Intel certification for its 1a DRAM-based server DDR5 product, further intensifying the competition.

Samsung's delay in mass-producing HBM3E for Nvidia has fueled speculation that the company might redesign its 1a DRAM circuitry. Reports indicate that Samsung's 8-layer HBM3E data processing speed lags about 10% behind that of competitors SK Hynix and Micron.

To regain competitiveness in the server DRAM and HBM sectors, Samsung is reportedly considering strategic adjustments to improve its DRAM products. Although no final decisions have been made, internal discussions about redesigning parts of its 1a DRAM circuitry are ongoing—a move that carries substantial risks.

Recently, Jun Young-hyun, head of Samsung's Device Solutions (DS) division, issued a rare apology during the announcement of the company's preliminary third-quarter 2023 results, which fell short of market expectations. He emphasized that the leadership team is taking full responsibility and will take action to overcome the crisis and achieve a resurgence.

Whether Samsung can pass HBM3E quality certification or decide to halt the project may hinge on its decision to redesign parts of the 1a DRAM circuitry. Should the redesign proceed, it could take at least six months, with mass production potentially starting as early as the second quarter of 2025. However, even with a successful redesign, the current market conditions present significant challenges for ensuring timely product supply.