The global memory chip shortage has created enormous challenges for every industry that relies on chips, especially in AI and data centers. Samsung Electronics has already moved in promising directions that could help ease some of this pressure. This year at Samsung’s 2024 foundry day, Samsung showed off its readiness to manufacture a 16-high stack of DRAM dies using hybrid bonding technology. For one, this breakthrough would be key to addressing the exploding demand for dynamic random-access memory (DRAM). It’ll enable graphics processing units (GPUs) and other accelerators in AI data centers.
While today’s chips are mostly 12 dies, Samsung has said a 20-die design is possible. The specification for High Bandwidth Memory version 4 (HBM4) allows for a maximum of 16 stacked DRAM dies. Now there is an opening for forward-looking innovations to increase capacity and performance. The recent spike in memory chip prices makes the case for innovation all the more clear. This increase in cost is the result of intense demand that siphons supply from every use.
The Current State of DRAM Demand
The need for DRAM has soared in recent years, especially from its indispensable support of AI related technologies. It’s not just cloud companies—companies like NVIDIA are experiencing hurricane-level growth in their data center-related revenues. Their profits skyrocketed from just under $1 billion in the last quarter of 2019 to an astounding $51 billion by October 2025. This dramatic increase highlights our seemingly unquenchable thirst for available computing resources. DRAM is key to meeting this demand.
According to industry experts, there are two primary strategies to mitigate supply issues with DRAM: enhancing innovation or constructing new fabrication facilities, commonly referred to as fabs. Constructing a new fab takes more than 18 months and $15 billion or so. The need for breakthrough, cost-competitive solutions that can rapidly scale manufacturing is more urgent than ever.
“Relief will come from a combination of incremental capacity expansions by existing DRAM leaders, yield improvements in [advanced packaging], and a broader diversification of supply chains.”
Samsung’s Strategic Developments
Samsung will start manufacturing out of a brand new plant in Pyeongtaek, South Korea, by 2028. This action is intended to significantly expand its vaccine manufacturing capacity. According to Micron, the company’s efforts are heavily directed towards creating new advanced packaging methods that make it possible to stack memory dies denser. The existing DRAM tower is roughly 750 micrometers thick. It sits on top of a base die that acts as an ultra-efficient data exchange engine between the die stacked memory and processors.
The impact of these changes may be substantial. Landing upon a design for 20 stacked dies would yield a 20 percent increase in the worldwide supply of DRAM facilities. This new development will dramatically alter the state of play. Yet the progress from idea to implementation can prove daunting without proper foresight and execution.
Mina Kim, an industry analyst, pointed out the challenges associated with addressing supply issues:
“In general, economists find that prices come down much more slowly and reluctantly than they go up. DRAM today is unlikely to be an exception to this general observation, especially given the insatiable demand for compute.”
Future Outlook and Challenges
As the industry continues to deal with the current memory chip shortage, it’s too soon to tell what the future holds. Today, the total worldwide DRAM capacity is about 9,000 facilities. To grow this capacity, we have to invest heavily. While Samsung’s innovations signal progress, the complex interplay of supply chain logistics and manufacturing capabilities will ultimately determine how quickly the market can adapt.
As per economic forecasts, even with expanded production capacity it would be some time before prices are brought back in alignment. The need for compute power is rapidly increasing in all sectors and industries. By extension, businesses need to be nimble and quick to adapt to a shifting, unpredictable landscape.
