Samsung Electronics in talks with Nvidia for high-bandwidth memory supply

Samsung Electronics Vice President Jun Young-hyun recently held discussions with Nvidia CEO Jensen Huang to negotiate the supply of high bandwidth memory (HBM3E).

Samsung Electronics is working to address initial shortcomings in its high-bandwidth memory products. The South Korean conglomerate is aggressively improving the design, with plans to begin mass production and deliver enhanced products by the end of the first quarter of 2025.

Samsung Electronics Vice President Jun Young-hyun met with Nvidia CEO Jensen Huang to promote the supply of high-bandwidth memory products HBM3E.

"We are preparing improved HBM3E products as planned," a Samsung Electronics representative said, noting that supply is expected to increase more noticeably from the second quarter.

The urgency of these improvements was emphasized during a recent high-level meeting between Jun Young-hyun, head of Samsung Electronics' Device Solutions division and vice president, and Nvidia CEO Jensen Huang.

The meeting took place at Nvidia’s Sunnyvale, California, headquarters and focused on Samsung supplying Nvidia with fifth-generation HBM3E products. The unexpected meeting has fueled speculation that Samsung’s qualification of 8-layer HBM3E products is nearing completion, a key step toward Samsung’s formal entry into Nvidia’s HBM supply chain.

"Mr. Jun's visit to the US to meet with Nvidia's leadership was to discuss recent improvements in 8-layer HBM3E products, as well as the progress of related quality certification, which showed positive signals," a source close to the matter revealed. However, a Samsung Electronics representative maintained a cautious stance when stating that he could not confirm the related issues.

Samsung is lagging behind compatriot SK Hynix in delivering HBM3E to the market.

HBM3E technology represents the latest advancement in high-bandwidth memory, known for its high speed and efficiency achieved through vertically stacked memory chips. The technology is an integral part of high-performance computing and graphics applications, making it a key component for Nvidia's high-value graphics processing units (GPUs).

Despite these advances, Samsung still faces stiff competition in the HBM market, especially from SK Hynix, which has been mass-producing and supplying 8-layer HBM3E products to Nvidia since March last year. SK Hynix has also moved toward delivering more sophisticated 12-layer products, a milestone Samsung has yet to reach. This competitive landscape illustrates the challenges Samsung faces if it wants to catch up.

The partnership between Samsung and Nvidia is significant given their respective roles in the global semiconductor and GPU markets. Successfully supplying HBM3E to Nvidia has a significant economic impact for Samsung, potentially boosting the company's market share and revenue.

Strategically, securing Nvidia as a customer would strengthen Samsung's position in high-performance computing.

Samsung Electronics on Tuesday nominated its chip business chief Jun Young-hyun and chief technology officer Song Jai-hyuk to join its board of directors, as the tech giant seeks to boost competitiveness in the struggling semiconductor sector.

The South Korean company also nominated Seoul National University professor Lee Hyuk-jae to a board role. Lee, a chip expert, heads Seoul National University’s semiconductor research center. With the two chip executives and a semiconductor academic nominated to the board, Samsung is looking to increase its focus on chips at the top of the company.

Samsung Electronics has been struggling to restore competitiveness in its chip business, after losing its market leadership in high-bandwidth memory (HBM) chips used in Nvidia's AI graphics processing units (GPUs) to domestic rival SK Hynix.

Samsung said the new board nominees will be voted on at a shareholder meeting scheduled for March 19.

Source: https://www.baogiaothong.vn/samsung-electronics-thuong-thao-voi-nvidia-ve-nguon-cung-bo-nho-bang-thong-cao-192250218122845425.htm