A Milestone Achievement for Samsung Electronics
Samsung Electronics has hit a significant milestone in its quest to deliver advanced memory chips tailored for AI systems. The tech giant’s latest innovation, the fifth-generation high-bandwidth memory (HBM) chips, known as HBM3e, successfully passed all of NVIDIA’s rigorous tests. This milestone is pivotal for Samsung, aiding in its efforts to catch up with industry frontrunners such as SK Hynix and Micron in the race to supply HBM memory chips to NVIDIA.
Current Market Dynamics and Future Projections
While a formal supply agreement has yet to be finalized, Samsung is poised to commence deliveries by late 2024. Nonetheless, it’s crucial to highlight that Samsung’s HBM3e chips have passed exams for the eight-layer variant. The more advanced twelve-layer HBM3e chips are grappling to clear NVIDIA’s tests. Both Samsung and NVIDIA have refrained from commenting on these ongoing developments.
Industry Perspectives and Competitive Landscape
Industry expert Dylan Patel notes that despite Samsung’s progress, it remains behind competitors like SK Hynix, which is already gearing up to ship twelve-layer HBM3e chips. Currently, only three primary manufacturers—SK Hynix, Micron, and Samsung—dominate the HBM chip market. SK Hynix has historically been NVIDIA’s main supplier, while Micron has recently announced plans to provide HBM3e chips to NVIDIA as well.
Looking Ahead: Growth and Market Trends
According to research firm TrendForce, high-bandwidth memory (HBM) technology is set for notable growth, with HBM3e chips expected to lead the market in the latter half of the year. SK Hynix anticipates an 82% annual growth rate for HBM memory chip demand through 2027. Samsung aims for HBM3e chips to constitute 60% of its HBM sales by the fourth quarter of this year, showcasing its commitment to capturing a larger market share.
