The Korean giant is giving their all into securing NVIDIA's trust with their next-gen HBM4 process, despite facing hurdles with previous attempts.
Samsung Is Apparently Ready For a 'Price War' With SK Hynix & Others In HBM4 Supply
For those unaware, Samsung has been trying to tap into NVIDIA's supply chain for several quarters now. This is an important step for the firm because Team Green is the largest HBM customer right now, which is due to the demand for the company's AI chips. In a report by the Korean media, it is claimed that Samsung is ready to be engaged into a 'price war' with the likes of SK hynix and Micron, and the firm plans to provide a competitive HBM4 pricing to NVIDIA, which will potentially provide it a leverage, and eventually, get included in the supply chain.
The Korean giant is reportedly ramping up production capacities and has also employed equipment such as ASML's High-NA EUV to ensure that it provides an unmatchable end product. More importantly, Samsung is positioned to price its HBM4 supply in a way that competitors like SK hynix and Micron cannot match, and the firm is willing to give up on its profit margins to ensure that it gets into NVIDIA's list of partners.
The reason why Samsung has an advantage, particularly with HBM4, is that the firm has its own independent logic and semiconductor production lines, which means it can provide NVIDIA with capacity unlike any other firm. And since SK hynix is rumored to be offering a 'premium' price for its HBM4 process, being up to 30%-40% more expensive than HBM3E, Samsung is really playing with fire here, by offering lower pricing, higher production capacity, to potentially make up for a relatively 'lower-quality' product compared to other SK manufacturers.
Samsung's Chairman Jay Y. Lee recently met with NVIDIA's CEO Jensen Huang during his visit to the US. Reports indicate that Team Green is keen on collaborating on HBM and other sectors. We could see a breakthrough for the Samsung-NVIDIA fiasco through HBM4, but this isn't certain for now.
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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