Samsung and SK Hynix Join Stargate: Memory Becomes a Strategic Weapon

Samsung Electronics and SK Hynix have joined OpenAI's Stargate infrastructure initiative, committing to scale DRAM production to 900,000 wafer starts per month.¹ The target represents more than double current global high-bandwidth memory capacity.² With HBM4 mass production launching in February 2026 and server DRAM prices surging 60-70%, memory has transformed from commodity component to strategic national asset.³

The Stargate Commitment

OpenAI announced the partnerships in October 2025, securing Korean memory production for its massive AI infrastructure buildout.⁴ The agreements cover both DRAM wafer production and new data center construction in South Korea.⁵

Production Targets

SK Group noted this commitment would more than double the current industry capacity for high-bandwidth memory chips.⁶

New Fab Construction

Both companies are building new fabrication facilities:⁷

Samsung plans to expand production capacity by approximately 50% in 2026, while SK Hynix announced infrastructure investment increases of more than four times previously planned figures.⁸

HBM4: The February Revolution

Mass production of HBM4 begins February 2026, marking the most significant architectural overhaul in memory technology history.⁹

Technical Advances

HBM4 doubles the interface width from 1024 to 2048 bits and exceeds 10 Gbps per pin, delivering more than 2 TB/s per chip.¹⁰ Performance improvements over HBM3E:

Already in Shortage

Despite production not yet reaching volume, high-bin HBM4 stacks face scarcity.¹¹ The shortage has elevated memory from a simple component to what analysts describe as a "strategic asset" of national importance.¹²

Server DRAM Price Surge

Samsung and SK Hynix seek 60-70% price increases on server DRAM contracts for Q1 2026 compared to Q4 2025 levels.¹³

Price Trajectory

The increases reflect intense demand from data center and AI infrastructure deployments that show no signs of slowing.¹⁴

Supply Dynamics

SK Hynix CFO previously stated the company has "already sold out our entire 2026 HBM supply."¹⁵ Micron confirmed similar constraints, with HBM capacity for 2025 and 2026 fully booked.¹⁶

South Korea's $65 Billion AI Push

The Stargate partnership fits within South Korea's broader $65 billion AI infrastructure investment program running through 2027.¹⁷

Investment Breakdown

Yongin Semiconductor Cluster

The Yongin cluster in South Korea is expected to become the world's largest HBM production hub by 2027.¹⁸ The facility will anchor Korea's position as the dominant force in AI memory manufacturing.

Strategic Implications

Memory as National Asset

The concentration of advanced memory production in South Korea creates both opportunity and risk:¹⁹

Advantages: - Dominant market position in HBM - Critical role in global AI infrastructure - Leverage in trade negotiations

Vulnerabilities: - Geographic concentration risk - Geopolitical exposure - Single points of failure

For AI Infrastructure

Organizations planning GPU deployments face memory-constrained timelines:²⁰

• HBM allocations require advance commitments
• Server DRAM costs rising significantly
• Memory availability may gate deployment schedules

Key Takeaways

1. 900K Wafers/Month: Samsung and SK Hynix targeting more than double current global HBM capacity
2. HBM4 February 2026: Mass production begins; already facing shortages
3. 60-70% Price Hikes: Server DRAM contracts surging Q1 2026
4. Strategic Asset: Memory elevated from component to national security concern
5. $65B Program: South Korea positioning as global AI infrastructure hub

The memory bottleneck that has constrained AI infrastructure may ease by 2027, but 2026 will remain supply-limited with pricing power firmly in Korean manufacturers' hands.

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