NVIDIA has been in a race to source DRAM for its AI accelerators and memory products, but the real edge, of course, is Jensen's unique relationships with Korean memory giants.
NVIDIA's CEO Just Met With SK's Chairman In a "Fried Chicken" Dinner, Discussing SOCAMM & HBM4
DRAM is proving to be essential for AI chip manufacturers that have been in severe shortages for several quarters now. This is mainly driven by hyperscaler demand, the sudden rise in demand for general-purpose DRAM products such as LPDDR, DDR, and GDDR. More importantly, NVIDIA and others see HBM as an integral part of their AI accelerators, which is why they cannot rule out securing long-term supply. And in the case of NVIDIA, the company is claimed to be best positioned to 'stay safe' from memory shortages, driven by early LTAs and Jensen's diplomacy.
For those who remember, NVIDIA's Jensen Huang met with Samsung's executives last October, where we saw images of executives dining at a "fried chicken" restaurant, and Jensen serving portions to the likes of Samsung's Jay Y. Lee. Not just this, but Hankyung reports that SK Group's Chairman, Tony Chey, met with Jensen Huang in the US recently, and the two executives dined at 99 Chicken in Santa Clara. While the meeting was important, it was also likely to make up for SK hynix's lack of presence during Jensen's visit to South Korea last year.
It is claimed that the recent discussions focused on SOCAMM, a low-power memory module vital to next-gen Rubin AI servers, as well as on the production of HBM4 modules. The report mentions that SK hynix is expected to take up a large share of NVIDIA's total HBM4 inventory, exceeding 50% in initial discussions. It is also disclosed that SK Group's Chairman took Jensen into confidence around the recent restructuring of Solidgm to "the AI Company", where the main idea is to collaborate with US customers a lot more closely.
When NVIDIA's CEO was asked whether the company would be affected by memory shortages, he disclosed the existence of early LTAs, putting Team Green ahead of its competitors in terms of supply chain dynamics. And yet again, NVIDIA's CEO and the way he interacts with manufacturing partners are why Team Green is always uniquely positioned.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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