Samsung Secures Nvidia’s Approval to Provide Standard AI Memory Chips
Samsung Electronics has secured Nvidia’s approval to supply its high-bandwidth memory (HBM) chips, marking a significant step in the competitive AI chip industry. Sources reveal that Samsung’s 8-layer HBM3E, a step below the latest 12-layer versions, received clearance from Nvidia in December. These chips will be used in Nvidia’s less powerful AI processors designed for the Chinese market.
This approval is a crucial milestone for Samsung as it strives to narrow the gap with its rival, SK Hynix, which has long been Nvidia’s top supplier of advanced AI memory. Nvidia CEO Jensen Huang acknowledged Samsung’s efforts at CES earlier this month, stating that while the company needs to refine its design, it is progressing rapidly and remains dedicated to the task.
Despite this achievement, Samsung still trails SK Hynix, which has solidified its lead by launching cutting-edge HBM chips ahead of competitors like Micron Technology. SK Hynix became the first to mass-produce 8-layer HBM3E chips earlier this year and has already introduced the more advanced 12-layer variant.
The stock market reflected these industry shifts, with SK Hynix shares plummeting by 12% on Friday, following the Lunar New Year break. Investors reacted to concerns over demand, spurred by the unexpected rise of DeepSeek’s AI technology. Meanwhile, Samsung’s shares dipped by just over 2%, following a weaker-than-expected profit report from its semiconductor division. Micron’s stock also fell in the U.S. after news of Nvidia’s approval for Samsung’s chips surfaced.
High-bandwidth memory plays a crucial role in AI technology, allowing faster and more efficient data processing. This specialized chip technology is not only lucrative but also less affected by traditional market fluctuations due to its complexity in production.
Samsung’s semiconductor division has faced setbacks in recent years, with its head, Jun Young-hyun, admitting to challenges securing Nvidia’s certification. Under his leadership, the company has overhauled its engineering teams and ramped up research efforts to compete more aggressively in the HBM sector. Samsung and SK Hynix are both gearing up to mass-produce the next-generation HBM4 chips in the latter half of this year, aiming to strengthen their positions as Nvidia’s key suppliers.
With AI development fuelling demand for high-performance chips, the competition in the HBM market is expected to intensify. Samsung’s recent approval signals a possible shift in the industry landscape, though it still faces an uphill battle against SK Hynix’s dominance.
