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Samsung Electronics said on Friday it is in “close discussion” to supply its next-generation high-bandwidth memory (HBM) chips, known as HBM4, to Nvidia, as it races to catch up with rivals in the booming AI chip market.
The South Korean tech giant plans to market the new HBM4 chip next year but has not disclosed when shipments will begin. HBM chips are critical components in artificial intelligence chipsets used for data-heavy computing.
SK Hynix Leads, Samsung Ramps Up
Samsung’s local rival SK Hynix, Nvidia’s top HBM supplier, said on Wednesday it aims to start shipping its HBM4 chips in the fourth quarter and expand sales next year.
In a related statement, Nvidia confirmed it is in key supply collaboration for HBM3E and HBM4 with Samsung, though it did not share further details.
In a separate move, Samsung announced it will purchase 50,000 high-end Nvidia chips to build an AI-enhanced semiconductor factory that aims to improve chip manufacturing speed and yield. Following the announcements, Samsung’s shares rose as much as 4.32%.
During Nvidia CEO Jensen Huang’s visit to South Korea for the APEC CEO Summit, he met Samsung Chairman Jay Y. Lee. The two discussed collaboration over fried chicken and beer.
Lee described Nvidia as a key customer and strategic partner, highlighting more than two decades of collaboration between the two firms.
Analysts See a Turning Point
Jeff Kim, Head of Research at KB Securities, said the HBM4 chip still requires further testing, but Samsung is in a favourable position given its large-scale production capacity. Kim said:
“If Samsung supplies HBM4 chips to Nvidia, it could secure a significant market share that it was unable to achieve with previous HBM series products.”
Samsung’s earnings have recently recovered, driven by conventional memory demand, after a weak performance and division reshuffle last year.
The company confirmed it now sells HBM3E chips to all related customers, joining rivals in supplying 12-layer HBM3E chips to Nvidia.
Analysts see the launch of HBM4 as a major test of Samsung’s ability to regain its market edge against SK Hynix.
First introduced in 2013, HBM (High-Bandwidth Memory) uses vertically stacked DRAM to save space and reduce power consumption, which is vital for AI data processing.
Investors are watching closely as Samsung’s share price has climbed nearly 60% since July, boosted by optimism in AI memory growth and rising chip prices.
