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Samsung may have just achieved a significant milestone in the AI chip market. Nvidia, the world’s biggest AI chip brand, has reportedly certified its high bandwidth memory (HBM) chips. The Korean firm’s HBM3 chips have received Nvidia’s approval for use in China. Its more advanced HBM3E solutions are still pending the Nvidia certification.
Samsung secures a big AI win with Nvidia certification for its HBM3 chips
The semiconductor industry is experiencing overwhelming growth due to the AI boom. As companies set out to establish AI data centers, training hubs, and peripheral infrastructure, chip demand and prices have surged exponentially. Riding on this growth, Samsung expects a staggering 1,450% increase in its quarterly operating profit in Q2 2024. The Korean firm is the world’s biggest supplier of memory chips.
However, it has been lagging in a key area, limiting its growth. Samsung’s HBM chips lacked Nvidia’s certification, blocking their use in leading AI processors. The company has been seeking this certification for a long time, and it has finally received it. Unfortunately, the job is still far from done for the Korean biggie. According to Reuters, Nvidia has only cleared Samsung’s HBM3 chips for use in its less sophisticated H20 AI chip.
Developed for the Chinese market, the H20 is made in compliance with export restrictions set by the US government. It isn’t the most powerful AI chip out there. Ideally, Samsung would want to supply its HBM3 chips for Nvidia’s advanced AI processors. Its compatriot SK Hynix has already gained an upper hand in this segment. Samsung would also be itching to obtain Nvidia’s approval for its HBM3E chips.
Nonetheless, it’s a step in the right direction for Samsung. The new report says it could start supplying HBM3 chips to Nvidia in August. It is unclear if the American chipmaker is still testing Samsung’s HBM3 and HBM3E chips for global use or if the chips have already failed to meet its requirements. There have been rumors that the HBM3E solutions have heat and efficiency issues, though Samsung has rubbished the claims.
There is a shortage of HBM3 chips
HBM chips are critical for AI processors. They provide the processors with massive amounts of fast memory that allow them to perform complex AI tasks quickly. Samsung is one of the only three makers of HMB chips, alongside SK Hynix and Micron. The latter two have already received Nvidia’s approval for global use. But, the AI boom is so huge that there is still a shortage of these chips. Nvidia would be keen to get Samsung onboard, but it won’t approve the chips unless the Korean firm meets its standards. It is up to Samsung to step up its game.
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