Competition in the artificial intelligence semiconductor market is expanding from high-bandwidth memory (HBM) to server low-power dynamic random access memory (DRAM) modules known as Socamm2.

The competition among the three major memory manufacturers - Samsung Electronics, SK Hynix, and Micron - has now entered a new phase centered on ultra-high capacities of 256GB.

What is Socamm?

If HBM is like the "blood vessels," delivering data to the GPU (the brain of artificial intelligence) at ultra-high speeds, then Socamm is like the "muscles" of an AI server, efficiently processing massive amounts of data while reducing power consumption.

Socamm is a modular, low-power DRAM memory designed specifically for servers. Each module contains four low-power DRAM chips. Compared to traditional server memory, Socamm offers more data transfer channels, resulting in higher speeds and better energy efficiency.

Unlike traditional server memory, Socamm modules are removable and replaceable. This feature has attracted the attention of data center operators.

When memory needs to be replaced or upgraded, operators do not need to replace the entire server; they only need to replace the memory modules to improve performance.

Micron Technology's decisive move

According to the company, U.S. chipmaker Micron Technology shipped its first 256GB Socamm2 module samples to customers worldwide last Tuesday. This module boasts approximately 33% more capacity than the 192GB Socamm2 products that Samsung Electronics and SK Hynix have traditionally positioned as flagship products.

Higher capacity means the ability to process massive amounts of data required for artificial intelligence computing at once, providing an advantage in large-scale model inference and other complex workloads.

Micron's latest move is closely related to its efforts to revive its technological reputation after a long period of being ranked third. Micron was the first company to receive Nvidia certification as a market supplier for Socamm1 (the precursor to Socamm2). However, it lost its leading position during the transition to the Socamm2 standard.

"Our new product boasts the industry's smallest size, highest capacity, and lowest power consumption," said Raj Narasimhan, senior vice president at Micron. "It will accelerate the trend of data centers moving towards larger memory capacities and lower power consumption."

Socamm2 may be Micron's chance to return to the competitive arena. According to data from market research firm Omdia, in the fourth quarter of last year, Samsung Electronics held a 36.6% global DRAM market share, SK Hynix held 32.9%, and Micron held 22.9%.

Samsung and SK Hynix

Currently, South Korean companies dominate the Socamm2 market. Samsung Electronics was the first in the industry to mass-produce 192GB Socamm2 modules and has used this lead to solidify its position throughout the supply chain. Samsung Electronics utilizes its 10nm-class fifth-generation process (1b), ensuring stable yields and performance. KB Securities Research Director Kim Dong-won stated, "Samsung Electronics is expected to supply 10 billion Gb of Socamm2 chips to Nvidia, accounting for approximately 50% of Nvidia's Socamm2 demand. Samsung Electronics is poised to hold the top position in terms of supply share."

SK Hynix is also maintaining strong momentum.

SK Hynix President Song Hyun-jong stated in a conference call in January, "We will continue to expand our Socamm2 product line and transition to the 10nm-class sixth-generation process (i.e., 1c process)."

The company's strategy is to extend its technological advantages in the HBM market to the Socamm field.

Current estimates indicate that SK Hynix has secured more orders than Micron. It is expected that all three companies will release Socamm2 memory products at NVIDIA's GTC 2026 developer conference.

Qualcomm and AMD are also paying attention to Socamm2

Nvidia's AI accelerator, Vera Rubin, is expected to launch in the second half of this year, marking a key turning point for the wider market adoption of Socamm technology.

Nvidia has decided to list Socamm alongside the Vera CPU used in Vera Rubin. Qualcomm, a powerhouse in the mobile chip market, and Nvidia's competitor AMD are also considering adopting Socamm.

Market research firm Market Research Intellect predicts that the low-power DRAM market, including Socamm, will grow at an average annual rate of 8.1% until 2033, reaching a market size of $25.8 billion.

A semiconductor industry insider stated, "Currently, these three companies are evenly matched, but once mass production begins, the ultimate winner will depend on subtle differences in optimization, especially yield and price competitiveness."

Source: Compiled from koreajoongangdaily

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