Samsung Electronics announced that it is in "intense negotiations" to provide its upcoming high-bandwidth memory (HBM) chips, or HBM4, to Nvidia, as the South Korean semiconductor manufacturer works to keep pace with competitors in the AI chip competition.

Samsung, intending to launch the new chip next year, did not indicate when it expects to deliver the updated version of its HBM chip, an essential component of AI chipsets.

Local competitor SK Hynix, Nvidia's leading HBM chip supplier, announced on Wednesday that it plans to begin shipping its newest HBM4 chips in the fourth quarter and increase sales next year.

Nvidia, in a statement regarding its partnership with Samsung and other South Korean firms, mentioned it is involved in "critical supply collaboration for HBM3E and HBM4," without providing further details.

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Samsung has lagged in seizing the AI-driven memory chip surge, resulting in poorer earnings results and a reorganization of its chip division last year. This quarter its earnings rebounded, fueled by demand for traditional memory chips.

This week, it announced that it sells its latest HBM3E chips to "all relevant customers," suggesting it has partnered with competitors in providing the newest 12-layer HBM3E chips to Nvidia.

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Analysts stated that the introduction of HBM4 chips will significantly test Samsung's capability to reclaim its competitive advantage in the market.

HBM, a standard of dynamic random access memory (DRAM) launched in 2013, features vertical stacking of chips to conserve space and minimize power usage, aiding in the processing of vast amounts of data created by advanced AI applications.

 

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Samsung is a South Korean multinational corporation based in Seoul, which began as a trading firm in 1938. Today, it ranks as one of the largest information technology firms globally, with Samsung Electronics as its leading subsidiary, a significant manufacturer of consumer electronics, such as smartphones, and components like semiconductors.

The term "Samsung" translates to "three stars" in Korean, symbolizing the founder's aspiration for the business to be significant, powerful, and eternally bright.