Nvidia CEO praises Samsung chips but stays silent on HBM deal
During a press conference held on the sidelines of the Nvidia GTC 2025 developers conference in San Jose on Wednesday, Huang said he expects Samsung to play an "important role." However, when asked whether Samsung's latest HBM3E chips will be used in Nvidia's next-generation graphics architecture, Blackwell Ultra, Huang refrained from giving a direct answer.
Instead, he explained that Samsung has the capability to integrate the base die of HBM with application-specific integrated circuits and memory, a key skill required for manufacturing leading-edge AI chips.
Huang's ambiguous response has fueled speculation over whether Samsung can secure Nvidia — one of the industry's largest buyers of high-value HBM chips — as a client.
Despite concerns, Samsung Electronics' shares remained strong on Thursday, continuing their upward trend as the chair and top executives reaffirmed their commitment to boosting stock growth.
Industry sources revealed that Samsung Chair Lee Jae-yong recently urged employees to adopt a 'do-or-die' mentality to reclaim the company's competitive edge, acknowledging the challenges in its key business sectors.
'What matters is not the crisis itself, but how we respond to it. We must invest in the future, even if it means sacrificing immediate profits,' Lee reportedly said in a prerecorded video message shown to around 2,000 Samsung executives, delivering a rare and direct statement.
Samsung's top executives have also pledged to make a "painstaking effort" to drive a market rebound.
Jun Young-hyun, head of Samsung's semiconductor business, confirmed that the company will begin mass production of its 12-layer HBM3E chips in the second quarter or the latter half of this year, while next-generation HBM4 chips are also set to enter mass production in the second half of 2025.
As of 2:30 p.m. Thursday, Samsung Electronics' shares rose 2.56 percent to 60,000 won ($41), marking a second consecutive day of gains.
For Samsung to fully capitalize on its 12-layer HBM3E chips, it needs to secure a supply deal with Nvidia for Blackwell Ultra, which Huang announced will launch in the second half of this year.
At GTC 2025, Huang also unveiled Vera Rubin, Nvidia's next graphics architecture, scheduled for release in late 2026.
Samsung is currently trailing behind its smaller rival, SK hynix, in the HBM race. SK hynix is already supplying 12-layer HBM3E chips to customers and showcased a prototype of its next-generation 12-layer HBM4 at GTC 2025.
Meanwhile, Huang downplayed concerns over the Trump administration's tariffs, stating that they will not have a significant impact on Nvidia's financial performance in the short term.
"We have a really agile network of suppliers; they are not just in Taiwan or Mexico or Vietnam," Huang said during the press conference. "If we add onshore manufacturing by the end of this year, we should be quite good."
Us President Donald Trump has threatened to impose additional tariffs on imported computer chips, continuing his protectionist trade policies targeting major trading partners like Mexico, Canada, and China since taking office in January.
Huang also emphasized Nvidia's evolving business model, stating that the company no longer considers itself a chipmaker, but an infrastructure supplier.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
21 hours ago
- Korea Herald
Seoul shares open higher with tech, auto gains
South Korean stocks opened higher Thursday, helped by gains in techs and autos. The benchmark Korea Composite Stock Price Index added 30.11 points, or 0.96 percent, to 3,160.2 as of 9:15 a.m. Overnight, the US stock indexes ended mixed after tech heavyweights pared most of their earlier steep losses. The S&P 500 dipped 0.2 percent, while the Dow Jones Industrial Average added 0.1 percent. The tech-heavy Nasdaq composite fell 0.7 percent. In Seoul, top-cap shares traded higher. Chip giant Samsung Electronics went up 1.84 percent. Leading battery maker LG Energy Solution inched up 0.26 percent. Top automaker Hyundai Motor added 1.25 percent, while its sister Kia edged up 0.29 percent. Defense giant Hanwha Aerospace increased 2.88 percent, and leading financial firm KB Financial inched up 0.27 percent. Among heavyweights, only chipmaker SK hynix declined, dropping 2.35 percent. The local currency was trading at 1,397.15 won against the greenback at 9:15 a.m., up 1.25 won from the previous session. (Yonhap)
Korea Herald
2 days ago
- Korea Herald
Samsung chief doubles down on home investment plans amid US expansion
Samsung Electronics Chair Lee Jae-yong has put the spotlight back on the conglomerate's massive investment drive, reaffirming his pledge to expand domestic jobs and foster high-value-added industries. During a business roundtable hosted by President Lee Jae Myung at the presidential office in Seoul on Tuesday, he vowed to push ahead with a 360 trillion won ($257.4 billion) investment in new growth sectors alongside its large-scale US commitments. 'Separate from our investments in the US, we will continue to invest in Korea to create quality jobs and nurture high-value-added industries," Chair Lee said during the meeting. His remarks underscore Samsung's intent to stay the course on its previously announced domestic investment plans regardless of any forthcoming developments in US investment. In May 2022, coinciding with the inauguration of President Yoon Suk Yeol's administration, Samsung pledged a total of 450 trillion won over five years to bolster next-generation growth drivers such as semiconductors, biotechnology and artificial intelligence. Of that total, 80 percent, 360 trillion won, has been earmarked for domestic investment, marking a 40 percent increase from the company's prior investment plans. Samsung Electronics is currently investing 20 trillion won in its Giheung campus in Gyeonggi Province to build three semiconductor research fabs and a next-generation research and development facility covering 460,000 square meters. It is also expanding its Pyeongtaek campus to include advanced memory, foundry and system semiconductor fabs. In the long term, Samsung plans to invest an additional 360 trillion won through 2047 to establish the largest semiconductor cluster in Korea, spanning 7.28 million square meters in Yongin, Gyeonggi Province. The first production line is set to begin operations by 2030. In the biotech sector, Samsung Biologics recently completed construction of its fifth plant in Songdo-gu, Incheon, and is proceeding with the development of Plants six through eight. The company had previously announced a roadmap to invest 7.5 trillion won over 10 years to further expand its biologics business. Samsung's investment initiative also includes a goal to recruit 80,000 new employees over the five-year span. According to market research firm Korea CXO Institute, Samsung Electronics hired 10,960 new employees last year — a 20.11 percent increase from the previous year — with the majority expected to be domestic hires. Industry observers are watching closely for any further details Samsung may unveil regarding its domestic investment roadmap. 'Given the geopolitical uncertainties, Samsung is likely aiming to build a stable ecosystem for advanced industries at home,' said an industry source who requested anonymity. 'The conglomerate's continued domestic investment is likely to influence the capital allocation strategies of other major firms.' Meanwhile, the Samsung chief is scheduled to attend the upcoming Korea-US summit's business delegation from Sunday to Tuesday.
Korea Herald
2 days ago
- Korea Herald
Seoul shares fall for 3rd day amid AI bubble woes; won sharply down
South Korean stocks closed lower for the third consecutive session Wednesday as big-cap tech shares tracked overnight losses of US tech giants sparked by concerns over a possible bubble in the artificial intelligence sector. The Korean won was trading sharply lower against the US dollar. The benchmark Korea Composite Stock Price Index dipped 21.47 points, or 0.63 percent, to close at 3,130.09. Trade volume was moderate at 331.7 million shares worth 11.6 trillion won ($8.3 billion), with losers outnumbering winners 643 to 241. Retail and foreign investors dumped local shares worth 392.7 billion won and 232.6 billion won, respectively, while institutions purchased 516.3 billion won. Overnight, the tech-heavy Nasdaq composite closed 1.46 percent lower, and the S&P 500 shed 0.59 percent after OpenAI CEO Sam Altman warned that the AI market may be in a bubble like the dot-com bubble during the late 1990s, which led to a stock market crash in the early 2000s. AI chip giant Nvidia lost 3.5 percent, AMD shed 5.44 percent, and TSMC slipped 3.61 percent. Investor sentiment was also dampened by heightened caution ahead of the Jackson Hole economic policy symposium, slated for Friday (US time), where Federal Reserve Chair Jerome Powell will make a speech on his outlook for the economy. Wall Street had initially been almost certain that Powell will signal a rate cut in September, but concerns have grown that the Fed chief may take a more cautious approach as the latest US producer price data showed sticky inflation. "Wednesday's slump of the Kospi can be attributed to the concerns over an AI bubble as seen in the US stock market overnight, the selling of tech shares, profit-taking of shipbuilding, nuclear power and defense shares that had led the recent increase of the Korean stock market," Seo Sang-young, an analyst at Mirae Asset Securities, said. Seo said nuclear power shares lost ground on foreign selling, while defense shares went down on a profit-taking sentiment. Shipbuilding shares showed weakness amid concerns domestic companies will again face fierce competition against Chinese firms, he added. In Seoul, chip giant SK hynix slid 2.85 percent to 255,500 won, while its rival Samsung Electronics gained 0.71 percent to 70,500 won. Leading battery maker LG Energy Solution lost 1.69 percent to 377,500 won, and defense powerhouse Hanwha Aerospace dipped 1.33 percent to 816,000 won. Nuclear power plant builder Doosan Enerbility shot down 3.53 percent to 57,400 won, and internet portal operator Naver declined 1.77 percent to 221,500 won. Shipbuilders were mixed, with Hanwha Ocean down 0.75 percent to 105,200 won and HD Korea Shipbuilding slipping 1.55 percent to 349,500 won. HD Hyundai Heavy gained 0.67 percent to 450,500 won. Automakers were among the few gainers. Hyundai Motor increased 0.68 percent to 220,500 won, and its sister Kia climbed 1.06 percent to 105,100 won. The local currency was quoted at 1,398.4 won against the greenback at 3:30 p.m., down 7.5 won from the previous session. (Yonhap)
