Samsung Leads the Race to Make CXL Memory the Next Big Thing in AI

Samsung Electronics is spearheading the development of Compute Express Link (CXL) memory, a cutting-edge technology poised to revolutionize AI data processing. As the market gears up for massive growth, Samsung plans to begin CXL deliveries in late 2024, setting the stage for a competitive future in AI memory solutions.

Samsung Pioneers CXL Memory Development to Meet the Growing Demands of AI Data Processing

The contest is to create next-generation memory to accommodate the rapid increase in data processing requirements imposed by artificial intelligence.

According to Nikkei Asia, Samsung Electronics is developing Compute Express Link memory, a candidate technology. It intends to commence deliveries in the latter half of 2024, following which the market is anticipated to experience significant growth.

CXL is an open standard for high-speed computing. "It's kind of like sticking wide roads together to allow huge amounts of data to travel back and forth," explained Choi Jang-seok, executive director of Samsung's memory division, at a July technical briefing for reporters.

CXL modules are constructed by stacking DRAM, a memory chip frequently employed for transient data storage. By connecting multiple semiconductor devices, including central and graphics processing units, CXL can increase memory capacity per server by up to tenfold.

Generative AI necessitates an immense quantity of training data and is generally estimated to utilize approximately ten times the amount of electricity as a Google search when responding to a user's inquiry.

Tech companies are building large-scale data servers to prepare for the increase in data volume. "Incorporating CXL can help us grow servers without physically expanding them," Choi said.

Samsung Strengthens Its CXL Infrastructure, Positioning Itself as a Leader in Next-Generation Memory Technology

In 2021, Samsung was among the first companies to create a CXL module. In June of this year, it disclosed that it had constructed CXL infrastructure certified by the prominent U.S. software company Red Hat as it completed its research on practical applications.

Establishing an ecosystem for research and development cooperation is essential when introducing new semiconductors to the market.

Samsung is the solitary memory manufacturer among the 15 major global companies on the board of the CXL Consortium, an industry group established in 2019. This position in an organization that possesses a comprehensive understanding of the technology's specifications and the requirements of its consumers provides it with a competitive advantage over other chip manufacturers.

Choi anticipates significant growth in the market in 2027 and 2028. Yole Group, a French research firm, expects the global CXL market to increase from $14 million in 2023 to $16 billion in 2028. To prepare for commercial use, efforts are ongoing to reduce manufacturing costs and establish large-scale production.

A developer at a memory manufacturer regards CXL as "the next competitive battleground" following high-bandwidth memory technology. HBM, which, like CXL, involves stacking DRAM, is essential for the operation of generative artificial intelligence. However, the availability of these processors could be improved.

SK Hynix, which developed the world's first HBM processor in 2013, has become the leading supplier of cutting-edge HBM products, surpassing Samsung. Due to a surge in HBM demand, SK Hynix's revenue for the January-June period reached a record high.

The SK group's chairman, Chey Tae-won, has said the company "cannot settle for the status quo" and "must seriously consider our next-generation profit model starting now."

Micron Technology, headquartered in the United States, is also developing CXL. The complementary but distinct functions that CXL and HBM play present a potential business opportunity.