Introduction
Samsung Electronics’ latest high bandwidth memory (HBM) chips have reportedly passed Nvidia’s suitability tests, according to Reuters. This development comes two months after initial reports suggested that the chips had failed due to heat and power consumption issues. Despite this approval, Nvidia plans to use Samsung’s memory chips only in its H20 GPUs, a less advanced version of the H100 processors designed for the Chinese market to comply with US export restrictions.
Nvidia’s Conditional Approval
While receiving approval for the HBM chips is a positive step for Samsung, Nvidia’s decision to limit their use to the H20 GPUs indicates a cautious approach. The future of Samsung’s HBM3 chips in Nvidia’s other GPU models remains uncertain, with potential additional testing required. Reuters also reported that Samsung’s upcoming fifth-generation HBM3e chips are still undergoing Nvidia’s evaluation process.
Market Implications
Securing Nvidia’s business has become a top priority for Samsung. In May, Samsung Foundry allegedly implemented an internal strategy, codenamed Nemo, to prioritize Nvidia’s orders across all departments. This push aims to help Samsung gain ground on its main competitor in the memory chip market, SK Hynix, which currently serves as Nvidia’s primary HBM supplier for GPUs. Micron is also expected to supply Nvidia with HBM3e memory chips soon.
Company Responses
When approached for comment, neither Samsung nor Nvidia responded to Reuters. Notably, Samsung previously denied the initial claims of chip failure. Recent reports suggest that the tech giant is making concerted efforts to align with Nvidia’s requirements and secure a more significant share of the memory chip market.
 chips have passed Nvidia's suitability tests after initial reports of failure. However, Nvidia will use Samsung's chips only in H20 GPUs for the Chinese market, adhering to US export restrictions. Samsung aims to compete with SK Hynix, Nvidia's primary HBM supplier, by prioritizing Nvidia's orders through an internal strategy. The future use of Samsung's HBM3 chips in other Nvidia GPUs remains uncertain. Both companies have declined to comment on the development.){kind=link}