Samsung Electronics and SK Hynix are gearing up to mass produce low power compression attached memory modules, or LPCAMMs, which are power-efficient memory chips optimized for AI applications. The two leading South Korean memory chipmakers expect the market for AI-equipped devices, such as smartphones and laptops, to grow this year, leading to a surge in demand for LPCAMMs.
Samsung and SK Hynix are planning to produce LPCAMM prototypes in the first half of 2024 and begin mass production in the second half of the year, according to sources in the industry on Feb. 14.
LPCAMM is a type of dynamic random access memory, or DRAM, used in computers, smartphones, and servers. LPCAMM offers high-capacity memory by combining multiple LPDDR5 chips, known for their low power consumption. The semiconductor industry is touting the LPCAMM as the next-generation DRAM to replace the existing SO-DIMM (Small Outline Dual In-line Memory Module) standard.
The advantages of LPCAMM lie in its compactness and power efficiency. “LPCAMMs can boost performance by 50% and increase power efficiency by 70%,” said an industry insider. “Reducing power consumption in memory semiconductors is crucial for advancing on-device AI technologies, making LPCAMM the most promising option available.” On-device AI refers to artificial intelligence capabilities that run locally on a device rather than in the cloud.
Samsung Electronics and SK Hynix, South Korea’s two leading memory chipmakers, are competing to dominate the on-device AI market by taking the lead in producing advanced LPCAMM. Samsung Electronics developed the first LPCAMM capable of transmitting data at a rate of 7.5 gigabits (Gb) per second last September.
The company forecasts LPCAMM to become a game-changer in the personal computer and laptop segment amid a shift towards ultra-slim laptops. According to Samsung, the share of ultra-slim laptops in the global laptop market is anticipated to increase from 64% last year to 88% in 2027, indicating a rise in demand for more compact and slender memory chips.
SK Hynix introduced LPCAMM2 last November, which boasts a higher transfer rate of 9.6Gb per second. The company said the LPCAMM2 can outperform two conventional DDR5-based SO-DIMMs with a single module. SK Hynix is working on developing quality test boards for the LPCAMM2, laying the groundwork for mass production. The chipmaker aims to start production in the second half of the year when the LPCAMM market is expected to be in full swing.
SK Hynix highlighted the potential of LPCAMM2 during its fourth-quarter earnings call last month. “AI technology is progressing faster than expected, resulting in the development of memory chips with various forms and functions,” said SK Hynix chief financial officer Kim Woo-hyun. “By advancing the LPCAMM2, a mobile module tailored for the on-device AI market, we aim to solidify our position as technology leaders.”
