Samsung Electronics Co. (OTC:SSNLF) has reportedly received the green light from Nvidia Corp. (NASDAQ:NVDA) for its latest high-bandwidth memory (HBM3E) product, marking a significant breakthrough in the AI hardware chip supply race.
Samsung Wins Nvidia Nod For HBM3E Memory Chips
Samsung’s fifth-generation 12-layer HBM3E product has passed Nvidia’s qualification tests, according to sources familiar with the matter, reported KED Global on Friday. This approval comes after a year and a half of development and several unsuccessful attempts to meet Nvidia’s stringent performance standards.
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The approval is a significant milestone for Samsung, symbolizing a recovery of its technological credibility in a fiercely contested sector of the semiconductor industry. The HBM3E chips are slated to be used in Nvidia’s flagship B300 AI accelerator and the MI350 from Advanced Micro Devices Inc. (AMD).
Samsung Shares climbed nearly 5% in the Korean stock market on Monday.
Supply To Stay Limited Despite Approval
The approval from Nvidia is a significant win for Samsung, as it signifies a return to form in the competitive semiconductor industry. This development is particularly noteworthy in light of the increasing importance of AI hardware, which is driving the demand for high-capacity memory chips.
Although Samsung has received approval, its supply of HBM3E chips to Nvidia is expected to remain limited, since it is the third company to gain clearance after SK Hynix Inc. and Micron Technology Inc. (NASDAQ:MU).
The competition is moving to HBM4, set to launch with Nvidia's next-gen Vera Rubin chips next year, with Nvidia pushing suppliers to raise speeds beyond 10 Gbps from the current 8 Gbps standard.
Nvidia Expands Its Partnership Base
Nvidia’s validation of Samsung’s HBM3E chips comes at a time when the company is expanding its customer base and partnerships, especially in the wake of its recent chip ban in China.
A semiconductor partnership between Nvidia and Intel Corp (NASDAQ:INTC) could benefit both companies, but Nvidia is seen as the clear winner in the tie-up. This validation could further strengthen Nvidia’s position in the market.
Benzinga's Edge Rankings place Nvidia in the 93rd percentile for quality and the 98th percentile for growth, reflecting its strong performance in both areas. Check the detailed report here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
