Sumsung Electronics is gearing up to deploy a chip-making technology championed by its rival, SK Hynix, as it aims to close the gap in the competitive race to produce high-end chips vital for driving artificial intelligence applications. The decision comes amidst a surge in demand for high bandwidth memory (HBM) chips, fueled by the increasing adoption of generative AI technologies. Unlike its counterparts SK Hynix and Micron Technology, Samsung has been notably absent from any deals with AI chip leader Nvidia for supplying the latest HBM chips, a trend it seeks to reverse.

An industry shift is underway, with Samsung pivoting towards mass reflow molded underfill (MR-MUF) technology, a departure from its reliance on non-conductive film (NCF) technology. This strategic move, albeit somewhat reluctant according to sources, acknowledges SK Hynix's pioneering success with MR-MUF in addressing production challenges associated with NCF. Despite Samsung's initial hesitancy, it has now issued purchase orders for chip-making equipment tailored for the MR-MUF technique, signaling a significant shift in approach.

The adoption of MR-MUF by Samsung underscores the intensifying pressure in the AI chip race, with the HBM chip market expected to more than double this year, reaching nearly $9 billion. While Samsung's HBM3 chip production yields currently lag behind SK Hynix, the move towards MR-MUF represents a strategic step towards enhancing competitiveness in a rapidly evolving landscape. As Samsung navigates this transition, it simultaneously explores collaborations with material manufacturers to source MR-MUF materials, positioning itself for a potential resurgence in the AI chip market.