Well, the HBM rumor mill around Samsung-NVIDIA has started to revolve quickly once again, as it is now reported that the Korean giant has secured a spot in Team Green's supply chain.
Samsung's Business Might See a Breakthrough With HBM3E, As The Firm Has Secured a Decisive Contract With NVIDIA
If you have been following Samsung's HBM developments in the past year, you might have realized that the information around it has changed drastically, especially when you consider the firm's efforts to secure a spot in NVIDIA's supply chain. Initially, with HBM3, Samsung was slated to supply NVIDIA, but the memory reportedly ran into thermal issues, which made the firm rely on HBM3E. Now, based on a report by the Korean media, it is claimed that Samsung has started to supply 12-Hi HBM3E stacks to NVIDIA, marking a massive breakthrough.
The report discloses that Samsung will soon supply 30K to 50K units of 12-layer HBM3E memory to NVIDIA, which will likely be integrated with Blackwell Ultra products. Now, there was a report a few days ago claiming that Samsung is expected to drop the pricing of its HBM3E products, in order to secure a spot in NVIDIA's team and give the likes of SK hynix tougher competition. The lower pricing might have done the job for Samsung, apparently, given that NVIDIA loves it when it squeezes out higher profit margins.
An HBM price drop will tilt the scale in Samsung's favor, since the company has one of the largest production lines in this segment. By offering a cheaper HBM3E process, either competitors will have to drop prices, or Samsung will gain a portion of their market share. More importantly, Samsung is also making rapid advancements with HBM4, and it has a strategic advantage with it as well, since the firm has its own independent semiconductor and logic production lines, allowing the Korean giant to provide more flexibility to its customers.
For now, Samsung hasn't officially confirmed the matter, but it did say in its Q2 earnings call that it is progressing massively with the HBM business. Securing NVIDIA's supply would be a pivotal breakthrough for the company, which has lost a large share of the DRAM business due to a delay in developing a competitive HBM product.
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.
Follow Wccftech on Google to get more of our news coverage in your feeds.
