Samsung is one of the suppliers of HBM3 memory for

Samsung is one of the suppliers of HBM3 memory for NVIDIA accelerators

It is generally accepted that in the production of the latest NVIDIA accelerators HBM3-type memory chips from the South Korean company SK hynix were used, but the competitor Samsung Electronics has long been offering such memory to its customers. According to Korean media, its products have only recently been approved by NVIDIA in this regard and will therefore be the last to be used from October this year.

    Image source: Samsung Electronics

Image source: Samsung Electronics

As explained BloombergAs a result of this news, Samsung Electronics stock price rose 6% – the strongest since January 2021. Citigroup officials said that after adding Samsung to the HBM3 supplier pool for NVIDIA’s needs, the company could become a leader in this market segment. In fact, Samsung remains the largest storage provider, especially in the HBM3 segment, it is ahead of SK Hynix. American Micron Technology is also trying to produce HBM3, but has only claimed 10% of the market so far, according to TrendForce analysts.

Samsung will begin supplying NVIDIA with its HBM3 chips starting next quarter, which also benefits NVIDIA itself, as it’s always more profitable and reliable to have two suppliers than one. Korean media also reported a month ago that Samsung would package chips for NVIDIA, reducing its reliance on TSMC services. The developer of the computing accelerators demanded by the market cannot fully meet the demand for them this year, mainly due to TSMC’s limited chip packaging capabilities. While the latter plans to double those by the end of next year, leveraging its competitors’ services would allow NVIDIA to fix the problem faster.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

Add Comment

Click here to post a comment