GMBStaff
3 Sep 23
<p>Samsung Electronics stock rose by approximately 6% on the Korea Exchange after gaining the right to supply advanced memory chips to Nvidia. The company has developed the industry's first and highest-capacity 32 gigabit DDR5 DRAM, using leading process technology. It will start supplying hig...
Samsung Electronics stock rose by approximately 6% on the Korea Exchange after it gained the right to supply advanced memory chips to Nvidia. Samsung has developed the industry's first and highest-capacity 32 gigabit (Gb) DDR5 DRAM, using leading process technology. The company will start supplying high bandwidth memory chips to Nvidia as early as October and has also agreed to supply HBM3 chips for next year. Samsung's shares gained the most since January 2021, as it becomes Nvidia's second supplier of HBM3 chips alongside SK Hynix. Furthermore, Samsung is in discussions to offer chip packaging services for Nvidia's GPUs and AMD's central processing units, as Nvidia looks for alternative foundry players due to fully booked packaging process lines.
The Korea Economic Daily reported that Samsung Electronics stock rose by around 6% on the Korea Exchange following the news that it gained the right to supply advanced memory chips to Nvidia. Samsung's recent development of the industry's first and highest-capacity 32 gigabit (Gb) DDR5 DRAM, using its cutting-edge 12-nanometer process technology, has solidified its position as a key player in the memory chip market. The company will begin supplying Nvidia with high bandwidth memory (HBM3) chips, which are optimized for artificial intelligence (AI) accelerators, as early as October. Samsung has also secured a deal to supply Nvidia with HBM3 chips in 2024, with an estimated supply volume of 30% of Nvidia's HBM3 needs. This news comes as a significant boost for Samsung, as SK Hynix was previously the sole supplier of HBM3 chips to Nvidia. Moreover, Samsung is exploring opportunities to provide chip packaging services for Nvidia's GPUs and AMD's central processing units. This move signifies Nvidia's transition away from fully booked packaging process lines, particularly from Taiwan Semiconductor Manufacturing (TSM), and highlights Samsung's growing presence in the semiconductor market.