Nvidia gives Samsung approval to supply less advanced AI memory chip - report
Jan. 31, 2025 6:06 AM ET
By: Ravikash Bakolia, SA News Editor
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Samsung Electronics ( OTCPK:SSNLF) received approval to supply its high-bandwidth memory, or HBM, chips to Nvidia (NASDAQ: NVDA), Bloomberg News reported, citing people with knowledge of the matter.
The South Korean tech giant's 8-layer HBM3E, less advanced than the newer 12-layer product, was approved by Nvidia in December 2024, the report added. These chips would be used for Nvidia's less powerful AI processors customized for the Chinese market, according to the report.
Nvidia and Samsung did not immediately respond to a request for comment from Seeking Alpha.
Earlier on Friday, Samsung noted that it expects a temporary constraint on HBM sales in the first quarter of 2025. The market for HBM is led by South Korean companies SK hynix and Samsung, and to a lesser extent by American chipmaker Micron Technology ( MU). SK hynix is the major supplier of advanced HBM chips to Nvidia, which makes graphics processing units or GPUs, used for AI products.
Earlier this month, Nvidia CEO Jensen Huang said at the Consumer Electronics Show that Samsung will have to engineer a new design. "But they can do it. They are working very fast. They're very committed to do it." the report noted.
SK hynix became the first supplier to mass-manufacture 8-layer HBM3E in early 2024 and started supplying the 12-layer version around the end of 2024, the report added.
Sooncheol Park, Samsung's head of Corporate Management Office and CFO, said on the company's earnings call that since the third quarter the company's HBM3E, 8-stack and 12-stack layer products have been in mass production and sales. In the fourth quarter, Samsung expanded its HBM3E supply to multiple GPU providers and data center clients, with HBM3E sales exceeding HBM3 sales, according to Park. |
