Micron Technology (NASDAQ:MU) shares fell about 3.2% on Monday after reports indicated that rival Samsung Electronics is set to begin mass production of next-generation high-bandwidth memory chips sooner than previously expected.
According to South Korea’s Yonhap News Agency, Samsung plans to start large-scale production of HBM4 chips as early as this month. The components are expected to be used in artificial intelligence processors from Nvidia (NASDAQ:NVDA). The report said Samsung has cleared Nvidia’s quality certification process and secured purchase orders, with production timing aligned to Nvidia’s rollout of its next-generation AI accelerator, known as Vera Rubin.
The news adds pressure on Micron, which competes with Samsung and SK Hynix in the high-bandwidth memory market. HBM chips, which are critical for advanced AI processors, command higher margins than standard memory products and have been a key driver of Micron’s share price, which has more than quadrupled over the past year.
During Micron’s most recent earnings call, Chief Executive Officer Sanjay Mehrotra said the company plans to ramp up its own HBM4 production in the second quarter of 2026. Samsung’s accelerated timeline could give it an advantage in supplying Nvidia and other AI chip designers.
Samsung’s HBM4 chips are reported to deliver data processing speeds of up to 11.7 gigabits per second, around 22% higher than the prior-generation HBM3E standard. The company is also positioning itself as the only semiconductor manufacturer offering an end-to-end solution spanning logic, memory, foundry and advanced packaging.
The development has renewed investor concerns over Micron’s ability to defend its market share as competition intensifies in the fast-growing high-bandwidth memory segment.