Login to Continue Learning
Well, the HBM rumor mill around Samsung and NVIDIA has been buzzing again as it’s reported that the Korean giant has secured a spot in Team Green’s supply chain.
Samsung’s Business Might See a Breakthrough With HBM3E
If you’ve followed Samsung’s HBM developments over the past year, you might have noticed significant changes. Initially, with HBM3, Samsung was set to supply NVIDIA but ran into thermal issues, prompting them to rely on HBM3E. Now, based on a report by Korean media, it’s claimed that Samsung has started supplying 12-Hi HBM3E stacks to NVIDIA, marking a significant breakthrough.
The report states that Samsung will soon supply between 30K and 50K units of 12-layer HBM3E memory to NVIDIA, which is likely to be integrated with Blackwell Ultra products. A few days ago, there was a report claiming that Samsung was expected to drop the pricing of its HBM3E products to secure a spot in NVIDIA’s team and compete more effectively against SK hynix. The lower prices might have been successful, as NVIDIA often prefers suppliers that can provide higher profit margins.
An HBM price drop will favor Samsung since it has one of the largest production lines in this segment. By offering cheaper HBM3E processes, competitors may need to reduce their prices or Samsung could gain a portion of their market share. Additionally, Samsung is rapidly advancing with HBM4 and holds strategic advantages due to its independent semiconductor and logic production lines, allowing more flexibility for customers.
For now, Samsung hasn’t officially confirmed the matter but did mention in its Q2 earnings call that it’s making significant progress in the HBM business. Securing NVIDIA’s supply would be a pivotal breakthrough for the company, which has lost a large share of the DRAM business due to delays in developing a competitive HBM product.
📚 Reading Comprehension Quiz
Based on the passage, which of the following statements best describes Samsung's current status in NVIDIA's supply chain for HBM3E memory?
Please login or register to take the quiz and earn points!
