Samsung bets on Nvidia to reclaim HBM lead

Korea Herald

4 days ago

Vice chair's Silicon Valley visit fuels hopes for Samsung's HBM3E supply to GPU giant
Samsung Electronics Vice Chair Jun Young-hyun, who oversees the company's semiconductor business, has traveled to the US to meet with Nvidia, fueling expectations that Samsung could narrow the gap with competitors and win new orders for high bandwidth memory chips.
According to industry sources on Wednesday, Jun visited Nvidia last week to discuss the supply of Samsung's fifth-generation HBM3E 12-layer products for the GPU maker's Blackwell Ultra GB300, as well as their foundry partnership. This visit to Silicon Valley came less than two months after a similar trip in early May.
HBM chips are critical components that enhance the performance of AI processors. While smaller rivals like SK hynix and US-based Micron Technology have already supplied their latest HBM3E 12-layer chips to Nvidia — the largest customer for the advanced memory products — and secured a boost in earnings in the process, Samsung has struggled to pass qualification tests and has fallen behind.
After a yearlong delay, Samsung redesigned its latest chip in the second quarter and is now pushing to supply the renewed version. The chipmaker recently delivered HBM3E 12-layer chips for AMD's next-generation MI350X AI accelerators, easing market doubts about its product quality. This has raised anticipation that Samsung could secure Nvidia's certification in the second half of the year.
During the visit, Jun also reportedly discussed with Nvidia its next-generation HBM4 chips, which are expected to see market adoption next year.
For the sixth-generation HBM4, Samsung plans to become the industry's first to adopt 1c DRAM technology, aimed to gain a competitive edge. SK hynix and Micron Technology already shipped their respective HBM4 samples to key customers in March and June, respectively. Their products reportedly use DRAM chips built on the older 1b process.
"For new markets such as HBM4 and custom HBM chips, we will proceed with development and mass production according to the plan, without repeating last year's mistakes," Jun said at the company's shareholders meeting in March.
Beyond memory chips, Samsung is seeking to secure contract manufacturing orders from Nvidia. Currently, the Korean chip giant produces Nvidia Tegra T239 chips for Nintendo's next-generation Switch 2 console, using its 8-nanometer process.
The Switch 2 has been a commercial success, selling more than 3.5 million units within just four days of its launch in June, which is expected to help improve earnings for Samsung's foundry business.
Samsung is now seeking to win orders for Nvidia's next-generation graphic process units using its cutting-edge 2nm gate-all-around process, which is scheduled for mass production by the end of this year.
The GAA process is a transistor architecture first developed by Samsung, offering better power efficiency and performance than the widely used FinFET designs.
Samsung began mass production of its 3nm GAA process in 2022, but initially struggled with yield rates, making it difficult to attract customers. The company has since improved 3nm yields and is now working to raise yields for its upcoming 2nm process.
If Samsung can win Nvidia's high-volume GPU orders, it could significantly improve its financial results and strengthen its competitiveness in the AI chip market.
"Securing Nvidia as a customer is critical to leading the next-generation HBM market," an industry official said. "As Samsung continues to report progress in overcoming the semiconductor downturn, its chances of expanding partnerships with major tech players are growing."