NVIDIA Secures $144 Million Memory Chip Supply from Samsung for China-Specific Blackwell B40 AI GPU

This content does not constitute investment advice. The author does not hold any shares in the stocks mentioned herein.

NVIDIA has reportedly requested that Samsung significantly increase its production of GDDR7 memory. This type of memory is essential for NVIDIA’s latest AI GPU accelerators, and the increase in production is likely linked to demand from these advanced chips.

NVIDIA Boosts GDDR7 Orders Ahead of Blackwell B40 Production for China

In its most recent earnings report, NVIDIA’s challenges with sales in China were highlighted, particularly as the company reported no revenue from its China-specific H20 AI GPUs. Following this, CEO Jensen Huang confirmed in an interview that he is in discussions with the Trump administration to obtain licenses for a new generation of AI GPUs tailored for the Chinese market.

These upcoming GPUs, known as the Blackwell B40 chips, are designed to utilize GDDR7 memory, circumventing restrictions that affect HBM memory due to U. S.export controls. Huang’s remarks seemed aimed at reassuring investors that future revenue streams from China are anticipated, despite the absence of H20 shipments during the second quarter.

Recent coverage by ET News suggests that NVIDIA is optimistic about securing U. S.approval for the B40 chip. During a White House press conference last month, President Trump acknowledged Huang’s approach regarding the necessary approvals for Blackwell. Trump stated, “I think he’s coming to see me again about that, ”referring to the future prospects of these AI chips.

Furthermore, ETNews has reported that NVIDIA has asked Samsung to double its GDDR7 memory production in preparation for anticipated orders. This aligns with predictions that the new GDDR7 chips will be used extensively in the B40 GPUs, indicating NVIDIA’s strategic push to capture a larger share of the Chinese market.

From a financial perspective, sources speculate that the cost of the GDDR7 substrates from NVIDIA could reach approximately KRW 200 billion, equivalent to around $144 million. The demand for GDDR7 in the Blackwell B40 represents a notable success for Samsung within the competitive high-end AI GPU sector, particularly given the company’s previous struggles to win over NVIDIA with its HBM offerings.

Moreover, reports indicate that Samsung is keen on securing a place in NVIDIA’s HBM supply chain by lowering prices. It has been suggested that Samsung may be supplying NVIDIA with HBM3e memory chips intended for use in the latest Blackwell Ultra AI GPUs.

Source & Images