Shifting to a “Dual-Track” Model? Reports Indicate Samsung Electronics’ HBM Base Die Supply Strategy is Changing

As the era of custom HBM (High Bandwidth Memory) arrives, Samsung Electronics’ supply strategy for HBM Base Dies is undergoing a significant adjustment.

According to Korean media reports, Samsung plans to break away from its previous model of relying entirely on its in-house foundry division for Base Die production. Instead, it is adopting a “dual-track” strategy that also leverages TSMC’s process technology to manufacture Base Dies.

Custom HBM allows for the integration of specific logic functions required by tech giants like NVIDIA directly within the chip. With market expectations for future demand surging, Samsung is working to enhance the flexibility of its Base Die supply chain to accommodate diverse customer needs.

Industry Background: The Growing Importance of Base Dies

Citing industry sources, Korean media reported that Samsung Electronics plans to use both Samsung Foundry and TSMC processes for the Base Dies of its custom HBM products.

An HBM stack consists of multiple vertically stacked DRAM Core Dies and a Base Die located at the bottom. The Base Die is responsible for connecting the memory to system semiconductors, enabling high-speed data transmission and reception.

As HBM generations evolve, the importance of the Base Die is increasing day by day. Starting with HBM4, the manufacturing of Base Dies has shifted from traditional DRAM processes to foundry processes. Compared to DRAM processes, foundry processes are more conducive to integrating additional functions onto the Base Die, thereby improving performance and energy efficiency.

The Era of Custom HBM and the Debut of “NVHBM”

The Base Die is set for major changes in the upcoming era of custom HBM. The core concept of custom HBM is to integrate specific functions onto the Base Die according to customer requirements. This demands close collaboration between customers, memory manufacturers, and foundry enterprises throughout the entire process, from product design to manufacturing.

A typical example is “NVHBM,” a custom HBM architecture announced by NVIDIA last month. Its core innovation lies in transferring the memory controller function—originally located within the AI accelerator—to the HBM Base Die. This architecture is scheduled to be implemented starting with HBM4E. Compared to standard HBM4E, it can increase memory bandwidth by up to 30% and reduce power consumption by up to 15%.
Amazon is currently considered the first customer to adopt NVHBM. Annapurna Labs, Amazon’s semiconductor development organization, has decided to utilize NVLink Fusion and NVHBM technologies to design its next-generation AI accelerator, “Trainium4.”

Samsung Electronics’ “Dual-Track” Supply Chain Strategy

The supply chain structure is also set to change. Previously, Samsung Electronics sourced the Base Dies required for its HBM products entirely through its internal System LSI Division and Foundry Division.

The report states that for custom HBM products such as NVHBM, Samsung will introduce Base Dies manufactured by TSMC. This means that on top of Samsung’s HBM Core Dies, Base Dies manufactured by Samsung Foundry and those manufactured by TSMC will be mixed and matched based on customer requirements.

According to insiders, Samsung Electronics plans to adopt a dual-track approach using both its internal foundry and TSMC for NVHBM Base Dies, depending on customer requests. The specific adoption and ratio will ultimately depend on customer demand.

Flexible Supply Outperforms the “Turn-Key” Model: Memory Division Takes the Lead

It is reported that if Samsung Electronics’ HBM Base Dies are manufactured by TSMC, the related chip design and optimization support will be handled by Samsung Electronics’ Memory Division. The internal System LSI Division will only be responsible for designing products intended for Samsung Foundry.

Another relevant source explained that personnel from the System LSI Division have already been transferred to Samsung Electronics’ Memory Division, and it is this group that is currently handling the TSMC Base Die-related work. He also revealed that customers are already using Samsung HBM Core Dies in combination with TSMC-process Base Dies for product design.

On the other hand, industry analysts believe that Samsung Electronics is splitting its custom HBM Base Die supply sources into two to avoid isolation at the supply chain level.

Currently, TSMC has established a robust supply chain with global tech giants like NVIDIA through its own foundry and packaging processes, earning customer preference for its stability and performance. Under these circumstances, if Samsung Electronics were to rigidly stick to its in-house foundry’s “Turn-Key” (one-stop production) model, it would struggle to meet the diverse customization needs of its customers.