NVIDIA CEO Jensen Huang’s 2018 Proposal to Samsung for HBM, Chip Processes, and CUDA Collaboration Was Met with Rejection

While Samsung has encountered its share of challenges and missteps, one decisive error may have been its refusal to engage in a long-term partnership with NVIDIA’s CEO. This missed opportunity could prove to be a significant blunder in the company’s history.

The Missed Opportunity: Samsung’s Rejection of NVIDIA’s CEO

Currently, Samsung finds itself in a precarious financial situation. The company’s semiconductor and high-bandwidth memory (HBM) divisions are experiencing considerable operational losses, largely attributable to their failure to leverage evolving market trends. According to a report from Korean media, it appears that Samsung had the chance to collaborate with NVIDIA on a groundbreaking HBM project but turned it down. This decision has likely cost the company billions of dollars.

The report highlights NVIDIA’s foresight regarding the future importance of HBM technology, prompting them to seek collaboration with established Korean suppliers known for their expertise in DRAM and NAND chips. Initially, NVIDIA’s CEO Jensen Huang targeted Samsung, then the foremost player in the semiconductor industry. Unfortunately, Samsung’s leadership dismissed Huang’s proposals, reflecting a lack of optimism regarding the potential of HBM technology. Huang expressed that there was insufficient readiness within Samsung for such a long-term collaboration, suggesting that, had they anticipated NVIDIA’s growth into a $4 trillion powerhouse, they might have reacted differently.

In stark contrast to Samsung’s missed opportunity, We Hynix is rapidly emerging as the leading supplier of HBM and memory products. The company is effectively eroding Samsung’s longstanding dominance in this market segment. Currently, We Hynix serves as the chief supplier for HBM3, HBM3E, and potentially HBM4 for NVIDIA. Their collaboration has resulted in significant revenue growth over the past few quarters, further solidifying their position.

If Samsung had embraced the partnership proposed by NVIDIA at that pivotal moment, they could have maintained a leadership role in the HBM and chip markets. Furthermore, this foresight would have prevented Korean competitors from gaining a competitive edge. As it stands, the chip markets are heavily influenced by TSMC, but had Samsung accepted Jensen’s proposals, the competitive landscape could have been notably different.

Samsung Reportedly Secures Huge HBM Order From NVIDIA With Supply Starting Next Month 1

Throughout the tech industry’s unfolding narrative, numerous predictions regarding NVIDIA’s trajectory have proven inaccurate. A notable example is SoftBank CEO Masayoshi Son, who sold a substantial stake in NVIDIA before the AI boom, resulting in immense financial losses. Predicting NVIDIA’s path and the pace of its innovations can be exceptionally challenging, and the uncertainty surrounding the company’s rapid advancements in AI continues to perplex many analysts.

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