Samsung Electronics has reportedly signed a licensing agreement with China’s Yangtze Memory Technologies Co. (YMTC) to use its patented hybrid bonding technology in next-generation NAND flash production. Analysts say the rare move by a South Korean company to license Chinese technology likely aims to preempt potential patent disputes.
NAND flash, a type of memory chip that retains data without power, is dominated by South Korean firms Samsung and SK Hynix, which together control more than half of the global market. Samsung leads the sector with a 35.2% share as of the third quarter of 2024, followed by SK Hynix (20.6%), Japan’s Kioxia (15.1%), and U.S.-based Micron (14.2%), according to TrendForce. Samsung currently produces 286-layer NAND, while SK Hynix offers 321-layer chips. Although YMTC remains a minor player by market share, it has ramped up production of 294-layer NAND, rapidly closing the technological gap with its South Korean rivals.
According to industry sources, Samsung and YMTC recently finalized a deal for 3D NAND hybrid bonding technology. This method bonds wafers directly without bumps, reducing chip height while enhancing data processing speeds. While current NAND technology supports stacking up to 300 layers, further scaling faces physical limitations. Higher layer counts enable higher-capacity chips, and major manufacturers are expected to adopt hybrid bonding for NAND exceeding 400 layers.
YMTC pioneered the use of hybrid bonding in NAND production, securing key patents early on.
Industry officials suggest Samsung’s licensing deal includes a cross-license agreement, allowing both companies to use each other’s patented technologies. The move follows YMTC’s 2024 lawsuit against Micron in a U.S. court, alleging NAND patent infringement.
“Avoiding unnecessary litigation is often the motivation behind such cross-licensing deals, even if the patented technology isn’t immediately used,” said an industry official.
