Samsung Confirms HBM3E Supply to NVIDIA After Delays, Joining SK Hynix and Micron in Advanced Memory Technologies

The speculation surrounding the partnership between Samsung and NVIDIA has intensified, with reports indicating that Samsung has successfully integrated into NVIDIA’s supply chain. This development comes amid Samsung’s ongoing advancements in High Bandwidth Memory (HBM) technology.

Samsung’s Strategic Move with HBM3E: A Game-Changer for NVIDIA

Over the past year, Samsung’s journey in HBM technology has undergone significant changes. Initially, the company was expected to provide HBM3 to NVIDIA; however, the technology encountered thermal challenges, prompting a shift toward HBM3E. According to a report from Korean media, Samsung is now supplying 12-Hi HBM3E stacks to NVIDIA, indicating a substantial milestone for both companies.

The report reveals that Samsung intends to deliver between 30, 000 to 50, 000 units of its 12-layer HBM3E memory to NVIDIA, designed for integration into NVIDIA’s upcoming Blackwell Ultra products. Samsung’s competitive pricing appears to play a crucial role in this arrangement, enabling NVIDIA to enhance its profit margins.

Samsung’s recent price reduction in HBM is expected to significantly benefit the company, given its status as one of the largest manufacturers in this segment. This competitive pricing strategy may compel rivals to either lower their prices or cede market share to Samsung. Moreover, advancements in HBM4 place Samsung in a favorable position, bolstered by its independent semiconductor and logic production capabilities, which offer flexibility to its clients.

While Samsung has yet to officially confirm this contract, the company alluded to its significant progress in the HBM sector during its Q2 earnings call. Securing a deal with NVIDIA would be a pivotal achievement for Samsung, especially after experiencing setbacks that affected its share in the DRAM market due to delays in rolling out competitive HBM products.

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