Samsung Electronics to step up its efforts in AI memory chips for Nvidia ✌️
It seems that there is demand at Nvidia 🤫
Yoolim Lee, Ian King
July 30, 2024 13:40 JST
Updated on July 30, 2024 15:14 JST
NVIDIA has approved the HBM3 chip, advancing in the HBM field, according to sources.
Samsung Electronics of South Korea has experienced multiple setbacks in the development of memory chips, which are essential for the artificial intelligence (AI) market. However, it is finally closing the gap with its rival SK Hynix.
According to several knowledgeable sources, Samsung is making significant progress towards recovery, such as obtaining long-awaited approval of the 4th generation HBM3 chip, a high-bandwidth memory (HBM), from NVIDIA, the leading player in the AI semiconductor industry. Based on internal information, which these sources anonymously disclosed, Samsung expects approval of the next 5th generation HBM3E within 2-4 months.
July 30, 2024 13:40 JST
Updated on July 30, 2024 15:14 JST
NVIDIA has approved the HBM3 chip, advancing in the HBM field, according to sources.
Samsung Electronics of South Korea has experienced multiple setbacks in the development of memory chips, which are essential for the artificial intelligence (AI) market. However, it is finally closing the gap with its rival SK Hynix.
According to several knowledgeable sources, Samsung is making significant progress towards recovery, such as obtaining long-awaited approval of the 4th generation HBM3 chip, a high-bandwidth memory (HBM), from NVIDIA, the leading player in the AI semiconductor industry. Based on internal information, which these sources anonymously disclosed, Samsung expects approval of the next 5th generation HBM3E within 2-4 months.
Jim McGregor, an analyst at TIRIAS Research specializing in technology analysis, noted that Samsung being in such a position is unprecedented, and the industry and NVIDIA need Samsung in the best possible condition.
While Samsung refrained from commenting on specific partners, it stated that it closely collaborates with customers as a general practice and that the tests are progressing smoothly.
With its advancements in the HBM field, Samsung is highly likely to fully leverage the rapid growth in demand for AI products. According to Morgan Stanley, the HBM market is expected to expand significantly from $4 billion last year to $71 billion (approximately ¥10.94 trillion) in 2027. The sooner Samsung obtains approval from NVIDIA, the leading manufacturer of AI accelerators, the greater the profits can be obtained from market expansion. The HBM3 that Samsung supplies to NVIDIA is used for the AI semiconductor 'H20', which is customized for the Chinese market to comply with US export regulations.
Samsung is expected to obtain approval for HBM3E from NVIDIA by November, but given the complexity of AI chips, unpredictable results may occur. According to sources, there is a possibility that the approval may be delayed until 2025.
In a report this month, Sanford C. Bernstein analysts indicated that NVIDIA will continue to use HBM3E in almost all of its products until the end of 2025, and competing companies will continue to use it until 2026. They also pointed out that while Samsung is behind, there is still a possibility of catching up.
While Samsung refrained from commenting on specific partners, it stated that it closely collaborates with customers as a general practice and that the tests are progressing smoothly.
With its advancements in the HBM field, Samsung is highly likely to fully leverage the rapid growth in demand for AI products. According to Morgan Stanley, the HBM market is expected to expand significantly from $4 billion last year to $71 billion (approximately ¥10.94 trillion) in 2027. The sooner Samsung obtains approval from NVIDIA, the leading manufacturer of AI accelerators, the greater the profits can be obtained from market expansion. The HBM3 that Samsung supplies to NVIDIA is used for the AI semiconductor 'H20', which is customized for the Chinese market to comply with US export regulations.
Samsung is expected to obtain approval for HBM3E from NVIDIA by November, but given the complexity of AI chips, unpredictable results may occur. According to sources, there is a possibility that the approval may be delayed until 2025.
In a report this month, Sanford C. Bernstein analysts indicated that NVIDIA will continue to use HBM3E in almost all of its products until the end of 2025, and competing companies will continue to use it until 2026. They also pointed out that while Samsung is behind, there is still a possibility of catching up.
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