Samsung and Nvidia forge HBM deal, kicking off supply next month.

Amidst long-standing rumors of collaboration between NVIDIA and Samsung, it appears that Samsung has successfully earned NVIDIA's trust in its High Bandwidth Memory (HBM) products. The turning point came as Samsung's HBM memory passed NVIDIA's rigorous fourth and final quality test, leading to the formalization of a supply contract set to kick off as early as next month. With both Samsung and SK Hynix on board as HBM suppliers, NVIDIA is poised to accelerate its AI GPU production.

Samsung and Nvidia forge HBM deal, kicking off supply next month.

The integration of Samsung into NVIDIA's supplier network was anticipated due to NVIDIA's struggle to meet the soaring demand for AI GPUs like the H100s. HBM plays a pivotal role in these GPUs, prompting NVIDIA to diversify its supply chain by partnering with Samsung. NVIDIA has ambitious plans, aiming to ship 1.5-2.0 million H100s by 2024. This goal hinges on having a robust network of suppliers.

Samsung's journey to secure the trust of tech companies for its products has been challenging. However, by securing a substantial portion of NVIDIA's HBM orders, not only will Samsung's memory division reap rewards, but its foundry service could also find utility in the production of AI GPUs. Samsung had previously proposed taking charge of all manufacturing processes for NVIDIA's AI GPUs. It is expected that Samsung's share of the HBM orders market could surpass 50%, outpacing competitors like SK Hynix and Micron.

In addition to its partnership with NVIDIA, reports suggest that Samsung has also taken on the responsibility of HBM production for AMD's Instinct AI GPUs. This positions Samsung comfortably and sets the stage for potential revenue growth in the upcoming financial quarters. Analysts predict that Samsung is poised to dominate in Q4, with its expanding role in the HBM market and other strategic ventures.

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