In a surprising development on February 24, Samsung has reportedly signed a patent licensing agreement with China's Yangtze Memory Technologies (YMTC) for 3D NAND hybrid bonding technology. According to South Korean media reports, Samsung's decision to collaborate with YMTC comes after an evaluation of increasing uncertainties in the next-generation NAND business. Since the release of its 10th generation NAND, Samsung has found it increasingly difficult to bypass YMTC's patents, especially in the face of rapidly advancing NAND technology.

Historically, Samsung and other semiconductor companies such as SK hynix have used the COP (Cell on Peripheral) method, placing peripheral circuits on a single wafer and stacking cells on top. However, as the number of layers increases beyond 400, pressure on the lower peripheral circuits negatively impacts the reliability of the NAND chips, posing a challenge to performance. In response, Samsung, along with SK hynix, is now adopting the W2W (Wafer-to-Wafer) hybrid bonding technology, which involves creating separate wafers for batteries and lines before bonding them together.

This hybrid bonding technology is the same one pioneered by YMTC with its Xtacking process, which the company began mass-producing approximately four years ago. With its robust patent portfolio, YMTC has been able to secure a strong foothold in the 3D NAND sector. According to reports, YMTC's Xtacking technology allows for independent processing of peripheral circuits responsible for data I/O and memory unit operations, enabling faster I/O speeds and more functional NAND chips.

While Samsung's decision to partner with YMTC may seem unexpected, the move aligns with the increasing demand for advanced NAND technology. YMTC's Xtacking 4.0 (Gen 5) process, which has been applied to its fifth-generation 3D NAND chips with up to 294 layers, continues to evolve. Additionally, YMTC has already mass-produced 160-layer, 192-layer, and 232-layer products, marking significant technological stability in the hybrid bonding process.

This partnership between Samsung and YMTC is expected to influence the future of NAND technology, with Samsung planning to roll out its V10 NAND, featuring around 420-430 layers, by the second half of 2025. Reports also suggest that SK hynix is negotiating similar licensing agreements with YMTC, further highlighting the critical role of this Chinese technology in next-generation memory production.

As the global NAND industry continues to evolve, Samsung's partnership with YMTC underscores the increasing importance of hybrid bonding technology in overcoming the physical limitations of traditional NAND production methods. This collaboration will also have a significant impact on Samsung's ability to compete in the rapidly growing market for high-performance memory chips used in AI, data centers, and advanced computing.