It is now reported that NVIDIA has placed orders for Samsung's 12-Hi HBM3E process, and it is claimed that the modules will be utilized for Blackwell Ultra rack-scale solutions.
NVIDIA Has Entered a Deal With Samsung For HBM3E, That Will Require the Purchase of 50,000 AI Chips From The Korean Giant
Well, by the looks of it, the Samsung HBM Saga is finally over, and for those who are unaware of what is being discussed here, the Korean giant has been struggling for months to enter NVIDIA's supply chain, but now, according to a report by News1 (Korean media), it is claimed that NVIDIA has specifically requested Samsung to supply 12-Hi HBM3E stacks, for their Blackwell Ultra AI systems. This means that all major Korean DRAM companies have been included in Team Green's supply chain.
The inclusion of Samsung in NVIDIA's HBM partner list is a significant achievement for all parties involved, as it was essential for Samsung to break into the mainstream HBM segment to regain its dominance in the DRAM market. More importantly, competitors like SK hynix and Micron have been leading the race when it comes to HBM adoption, which means that the Korean giant, despite their decades-long efforts in the DRAM market, couldn't manage to break into the AI segment at all, which is why the HBM orders from NVIDIA have immense importance for Samsung.
It is claimed that Samsung has also announced plans to acquire 50,000 of NVIDIA's AI chips, although the specifics of the deal haven't been disclosed yet; hence, it seems like a 'circular deal' is planned, which we could see emerge in the upcoming days. The important point here is that HBM3E has been relatively older in the industry, and now, all eyes are set on next-generation HBM4, which Samsung claims to have an edge over others. We will discuss why ahead.
Samsung has its own logic and semiconductor production lines, which means that for HBM4, the Korean giant has an edge, as firms like SK hynix and Micron will employ TSMC processes. This is why it is claimed that Samsung plans to sell HBM4 processes at a highly competitive price, which would be almost unavoidable for tech giants like NVIDIA or AMD. However, these are just rumors for now, and we'll have to see how the situation for Samsung evolves with time.
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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