Samsung facing challenges with HBM chips, not meeting Nvidia's requirements, raising industry concerns.

From Investing.com: 2024-05-23 19:06:45

Samsung Electronics is facing challenges in passing Nvidia’s tests for using their high bandwidth memory chips due to heat and power consumption issues. Samsung’s HBM3 and HBM3E chips have not met Nvidia’s requirements, raising concerns in the industry. SK Hynix is already a major supplier to Nvidia while Micron is also providing HBM chips.

Samsung recently replaced the head of its semiconductor unit, indicating concerns about lagging behind in HBM technology. Although Samsung is not yet a supplier to Nvidia, it does supply other customers and plans to mass produce HBM3E chips soon. SK Hynix has a technological edge in HBM development, spending more time and resources on research.

GPU manufacturers like Nvidia and AMD are eager for Samsung to perfect its HBM chips to provide more options and weaken SK Hynix’s pricing power. Nvidia expressed enthusiasm for Samsung’s 12-layer HBM3E chips, which are expected to become mainstream in the market this year. Demand for HBM memory chips is projected to increase significantly.

Samsung’s weaker position in HBM technology has been noticed by investors, with its shares remaining flat while SK Hynix and Micron’s stocks have seen significant increases. This highlights the importance of Samsung resolving the issues with their HBM chips to stay competitive in the market.



Read more at Investing.com: Exclusive-Samsung’s HBM chips failing Nvidia tests due to heat and power consumption woes, sources say By Reuters