As global artificial intelligence (AI) service firms scramble to reduce the enormous amount of electricity consumed by data centers, the market’s attention is now turning to Low-Power Double Data Rate (LPDDR) memory, commonly used for smartphones and other portable devices.

Nvidia, Intel and other tech companies are increasingly relying on LPDDR for server DRAM, prompting memory chip makers to accelerate development of next-generation LPDDR as well. Since Chinese players are catching up much faster in LPDDR, industry leaders Samsung Electronics and SK hynix are now under growing pressure to widen their technology gap and secure long-term dominance before the market becomes more crowded.

According to industry officials, Nvidia recently picked LPDDR for server memory instead of the more standard choice of DDR5. The move appears to be aligning with the company’s transition toward the second-generation SOCAMM2 standard, which combines multiple LPDDR5X memories into a module to cut power consumption to roughly one-third of conventional DDR-based modules.

Last month, Intel also unveiled Crescent Island, a low-power graphics processing unit for AI inference that uses LPDDR5X instead of high-bandwidth memory (HBM). Qualcomm has also begun developing its LPDDR-based AI accelerator, the AI200, targeting a commercial launch next year.

Amid these moves, memory chip makers are stepping up their race for leadership.

Samsung Electronics has completed development of its LPDDR5X-based SOCAMM2 module, and is now undergoing a validation process with major clients.

SK hynix is also engaging in sample tests for server memory modules meeting the SOCAMM2 standard with major clients. Micron officially announced on Oct. 22 that it has shipped SOCAMM2 samples to customers for testing.

“As Nvidia recently shifted toward LPDDR for server memory, the market is now seeing an additional demand equivalent to that of major smartphone makers,” said Hwang Min-seong, research director at Counterpoint Research. “It is a level of change that the existing supply chain cannot easily absorb.”

As a supply bottleneck is anticipated, the market assumes that Samsung Electronics will likely benefit the most, given its DRAM manufacturing capacity of 650,000 to 700,000 wafers per month.

According to market tracker Omdia, Samsung Electronics claimed 57.9 percent of the global mobile DRAM market, which includes LPDDR, in the first quarter of last year, up from 54.8 percent in 2023.

In 2024, the company developed the industry’s fastest 12-nanometer LPDDR5X that runs at 10.7 gigabits per second (Gbps). Samsung Electronics is widely expected to unveil its LPDDR6 during CES 2026 next year as it won CES Innovation Awards. It is rumored that the company may using the memory tech for the upcoming Galaxy S26.

SK hynix also has a strong track record in LPDDR, developing its own LPDDR5T running at 9.6 Gbps, which was the fastest in 2023. The company is now seeking to expand its fabrication capacity for chips manufactured through 1c-nanometer process, the most advanced node currently used in the 10-nanometer class, to find a production balance between its flagship HBM and other DRAMs including LPDDR. SK hynix is also expected to unveil its LPDDR6 next year.

Against this backdrop, Chinese rivals are in hot pursuit to narrow the Korean firms' technology lead. Earlier this week, CXMT unveiled its first LPDDR5X and modular products for servers and PCs at the China International Semiconductor Expo. The company’s LPDDR5X achieves a speed of 10.7 Gbps, competing at a similar level with that of industry leaders.

By: DocMemory
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