HBM3 Supply to Nvidia Expected as Early as Next Month
Equipped in GPUs for Export to China
Reports have emerged that Samsung Electronics' 4th generation high-bandwidth memory (HBM) 'HBM3' has passed NVIDIA's quality tests. This memory is expected to be installed in NVIDIA's AI chips for export to China. However, the 5th generation product, 'HBM3E,' has reportedly not yet received NVIDIA's supply approval.
According to Reuters on the 23rd (local time), Samsung Electronics passed NVIDIA's quality tests for the 4th generation HBM3.
Reuters stated, "This is the first time Samsung Electronics' HBM is used in NVIDIA processors."
Until now, SK Hynix has almost monopolized the supply of HBM to NVIDIA. Holding the leading position in the HBM market, SK Hynix exclusively supplied HBM3 to NVIDIA and began mass-producing and supplying the 8-stack HBM3E to NVIDIA in March. Samsung Electronics has been undergoing quality tests for HBM3 and HBM3E since last year to break into transactions with NVIDIA.
Samsung Electronics' HBM3 is expected to be installed in NVIDIA's graphics processing unit (GPU) called 'H20' as early as next month. H20 is an AI semiconductor dedicated to the Chinese market, released by NVIDIA with reduced performance following U.S. government regulations implemented at the end of last year.
Additionally, Reuters added that Samsung Electronics has not yet met NVIDIA's standards for the 5th generation HBM3E, and testing for the chip is ongoing. Both NVIDIA and Samsung Electronics have reportedly not responded to Reuters' requests for comment.
Reuters noted, "NVIDIA's approval of Samsung's HBM3 chip comes amid a surge in demand for sophisticated GPUs due to the generative AI boom," and added, "SK Hynix, the leader in this field, plans to increase production of HBM3E while reducing HBM3 output, which will increase NVIDIA's need to boost HBM3 supply."
Earlier in May, Reuters reported, citing anonymous sources, that Samsung Electronics had failed NVIDIA's tests due to difficulties with heat generation and power consumption. Samsung Electronics refuted this, stating, "We are smoothly conducting tests for HBM supply with various global partners."
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