Samsung Converts Legacy NAND Line to Boost HBM4 DRAM Production, Targeting AI Memory Dominance

Samsung is converting its aging Hwaseong 12 line from 2D NAND to a specialized final-stage production line for advanced 1c DRAM.

This strategic move directly supports the mass production of HBM4 memory for AI by resolving a critical manufacturing bottleneck.

The reallocation frees up capacity equivalent to 12-15% of Samsung's total DRAM input, reinforcing its pivot toward high-value AI memory amid forecasts of tripling HBM revenue.

Samsung Electronics has made a pivotal decision to convert its legacy Hwaseong 12 line into a production hub for its most advanced memory chips.

This move is driven by one of the biggest trends in technology today: the artificial intelligence revolution. The powerful processors that train AI models are incredibly hungry for data, and that hunger is creating explosive demand for a special type of memory called HBM (High Bandwidth Memory). Samsung recently began mass-producing its latest version, HBM4, which is built by stacking state-of-the-art 1c DRAM chips.

Here’s how the pieces connect. First, to win the AI race, Samsung needs to produce a massive volume of HBM4. Second, making HBM4 depends entirely on a stable supply of high-quality 1c DRAM. However, Samsung was facing a bottleneck in the final, most delicate stages of 1c DRAM manufacturing, known as the BEOL (Back-End-Of-Line) process. This bottleneck was limiting the entire HBM4 production ramp-up.

Meanwhile, the Hwaseong 12 line was making nearly obsolete 2D Planar NAND, a type of flash memory that has been largely replaced by more advanced 3D V-NAND. Production on this line was already winding down. So, Samsung made a brilliant strategic choice: retire the old product line and repurpose the factory space into a dedicated 'end-fab' specifically for the 1c DRAM BEOL process.

This decision effectively solves the production chokepoint. The conversion provides a capacity boost equivalent to roughly 12-15% of Samsung's entire monthly DRAM wafer input, creating a crucial safety valve for its HBM4 ambitions. This aligns perfectly with the company's forecast to more than triple its HBM revenue in 2026. The market has taken notice, with Samsung's stock price climbing over 13% since the HBM4 mass production announcement, signaling strong investor confidence in this strategic pivot from commodity memory to high-value, AI-focused solutions.

HBM (High Bandwidth Memory): A high-performance type of memory that stacks DRAM chips vertically to achieve much faster data transfer speeds than conventional memory, making it essential for AI and high-performance computing.
Planar (2D) NAND: An older generation of flash memory where cells are arranged in a single flat layer. It has been superseded by 3D NAND, which stacks layers of cells to achieve higher density and performance.
BEOL (Back-End-Of-Line): The final phase of semiconductor manufacturing, where the tiny metal interconnects are layered on the wafer to connect the transistors and form the complete circuit.

Samsung Converts Legacy NAND Line to Boost HBM4 DRAM Production, Targeting AI Memory Dominance

Samsung is converting its aging Hwaseong 12 line from 2D NAND to a specialized final-stage production line for advanced 1c DRAM.

This strategic move directly supports the mass production of HBM4 memory for AI by resolving a critical manufacturing bottleneck.

The reallocation frees up capacity equivalent to 12-15% of Samsung's total DRAM input, reinforcing its pivot toward high-value AI memory amid forecasts of tripling HBM revenue.

Samsung Electronics has made a pivotal decision to convert its legacy Hwaseong 12 line into a production hub for its most advanced memory chips.

HBM (High Bandwidth Memory): A high-performance type of memory that stacks DRAM chips vertically to achieve much faster data transfer speeds than conventional memory, making it essential for AI and high-performance computing.
Planar (2D) NAND: An older generation of flash memory where cells are arranged in a single flat layer. It has been superseded by 3D NAND, which stacks layers of cells to achieve higher density and performance.
BEOL (Back-End-Of-Line): The final phase of semiconductor manufacturing, where the tiny metal interconnects are layered on the wafer to connect the transistors and form the complete circuit.