Samsung Eager to Integrate into NVIDIA’s Supply Chain, Ready to Compromise Profit Margins for Next-Gen HBM4

Samsung Aims to Secure NVIDIA’s Partnership with Next-Gen HBM4 Technology

In a bid to strengthen its business relationship, Samsung is intensifying its efforts to win over NVIDIA with its upcoming High Bandwidth Memory (HBM4) technology. This comes despite previous challenges that have hindered their collaboration.

For those unfamiliar with the situation, Samsung has been striving to integrate itself into NVIDIA’s supply chain for several quarters. This initiative is crucial for Samsung, especially since NVIDIA currently holds the position of the largest customer in the HBM market, driven by soaring demand for its cutting-edge AI chips.

Boosting Production Capabilities

Reports suggest that Samsung is significantly increasing its production capabilities, incorporating advanced equipment, including ASML’s High-NA Extreme Ultraviolet (EUV) lithography technology. This strategy aims to ensure that the company delivers a superior product that meets the high standards of the market.

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Leveraging Manufacturing Independence

One of Samsung’s key advantages in the HBM4 competition is its independent production lines for logic and semiconductors. This capability allows the company to offer NVIDIA a level of manufacturing capacity that few others can match, presenting an opportunity to solidify their partnership.

Recent Developments in Collaboration Talks

Recently, Samsung’s Chairman Jay Y. Lee met with NVIDIA’s CEO Jensen Huang during a visit to the United States. Sources indicate that NVIDIA is interested in exploring collaborative efforts in HBM technology and potentially other areas. While a significant breakthrough between Samsung and NVIDIA regarding HBM4 could be on the horizon, the outcome remains uncertain.

As both companies navigate this critical juncture, the unfolding relationship could reshape the HBM landscape and significantly impact the technology sector.

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