Samsung Electronics has reportedly initiated a large-scale personnel reshuffle, reallocating engineers to its next-generation semiconductor hub in Pyeongtaek. However, the company denied these claims, stating they are unfounded.
Korean media suggest the reshuffle was directed by Young-hyun Jun, EVP and head of Samsung's Device Solutions (DS) division.
The reassignment aims to boost yield rates in advanced DRAM processes and address Samsung's lag in high-bandwidth memory (HBM), a key initiative under Jun's leadership to revitalize the semiconductor division.
South Korea's SBS reported that over 2,000 engineers from Samsung's Giheung and Hwaseong campuses have been relocated to Pyeongtaek. The move, reportedly ordered by Jun, aims to position engineers closer to the production base, enhancing process management and product quality.
The reassignment focuses on engineers specializing in optimizing yield rates during the transition from development to mass production.
Samsung is reportedly accelerating equipment procurement for its Pyeongtaek P4 facility, expected to begin mass production of sixth-generation 10nm-class DRAM (1c DRAM).
Samsung struggles to meet Nvidia's HBM standards
Samsung's HBM3E reportedly fails to meet industry standards, likely excluding it from Nvidia's supply chain this year. Wccftech reported on December 11 that Samsung failed to meet Nvidia's HBM standards, issuing a rare apology while expressing optimism for a breakthrough.
Korea Daily News reported that Samsung admitted it is "highly unlikely" to meet Nvidia's requirements for 8-layer and 12-layer HBM3E chips this year but remains optimistic for next year.
Samsung has reportedly struggled to gain Nvidia's trust as SK Hynix raises the bar with advanced technologies like mass reflow molded underfill (MR-MUF).
Reuters reported on March 12 that Samsung's reliance on non-conductive film (NCF) technology has contributed to production issues and failure to meet Nvidia's HBM3 standards.
Money DJ reported that Samsung recently ordered MUF-specific chip manufacturing equipment. Analysts noted that Samsung's HBM3 yield rates were 10-20% in March, far below SK Hynix's 60-70% then.
Samsung's reassignment of 2,000 engineers to Pyeongtaek is likely aimed at addressing HBM3 yield issues and narrowing the gap with SK Hynix.
SK Hynix's 3nm HBM4 strategy widens gap with Samsung
Korean media indicate Samsung's personnel reshuffle is designed to boost 1c DRAM yield rates, vital for its sixth-generation HBM4 core die, and to close the gap in the competitive HBM market.
SK Hynix and Micron have opted for 1b DRAM (fifth-generation 10nm-class) in their HBM4 products. Experts suggest Samsung sees improving 1c DRAM yields as crucial to overcoming its HBM market challenges.
KED Global's latest report suggests that SK Hynix will shift to a 3nm process for HBM4 production in late 2025, driven by client demands. The company will collaborate with TSMC, with Nvidia as its primary customer.
Yahoo News, citing an insider on social platform X, reported that SK Hynix's adoption of TSMC's 3nm technology is a strategic response to Samsung's plan to use a 4nm process for HBM4 production.
HBM chips rely on a base die at the bottom, connecting to a GPU as its "brain." A 3nm base die could boost performance by 20-30% compared to a 5nm die in HBM4 chips.
SK Hynix's move to a 3nm process aligns with its strategy to deepen ties with US Big Tech, including Nvidia, Google, and Microsoft, while reducing reliance on China amid US export restrictions.
The 3nm base die for HBM4 is expected to widen SK Hynix's lead over Samsung, which plans to use a 4nm process for its sixth-generation HBM4 chips. As a result, Samsung is reportedly exploring 3nm production for HBM4 dies, potentially using TSMC's 3nm technology, according to Yahoo News and Money DJ.
Samsung restructures leadership amid HBM4 challenges
Following a weak third-quarter forecast, Samsung's strategy now centers on early HBM4 mass production and sub-2nm foundry solutions, according to Businesskorea.
KED Global previously reported that Samsung may cut executive roles and restructure semiconductor operations as it lags behind SK Hynix and Micron in advanced memory during the AI boom.
Yonhap News and TrendForce report that Samsung informed senior executives of dismissals, initiating its year-end reshuffle early on November 27.
Industry officials, cited by KED Global, say Samsung's declining DRAM competitiveness necessitates restructuring, a crucial step to reversing its fortunes.
