Recently, Samsung Electronics' fifth-generation high-bandwidth memory (HBM) chip, HBM3E, has successfully passed Nvidia's tests, qualifying it for use in their artificial intelligence (AI) processors. According to insiders, although a formal supply agreement has not yet been signed, it is expected to be finalized soon, with supply possibly starting in the fourth quarter of 2024. This is good news for Samsung as it has finally crossed an important threshold in its competition with local rival SK Hynix.
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However, Samsung's 12-layer HBM3E chip has yet to pass Nvidia's tests. Insiders point out that Samsung has faced challenges over the past year in trying to pass Nvidia's tests due to some thermal and power consumption issues. To address these problems, Samsung reworked the design of the HBM3E and eventually passed the tests.
HBM is a type of dynamic random-access memory (DRAM) that first emerged in 2013, using vertical stacking to save space and reduce power consumption. For graphics processing units (GPUs), HBM is a critical component as it can handle the vast amounts of data generated by complex applications. With the rise of generative AI technology, the market's demand for high-performance GPUs has surged.
According to research firm TrendForce, HBM3E chips are expected to become the market mainstream this year, especially in terms of shipments in the second half. SK Hynix is also rapidly advancing the shipment of 12-layer HBM3E. Samsung anticipates that by the fourth quarter of 2024, HBM3E chips will account for 60% of its HBM sales. Currently, the major global HBM manufacturers are SK Hynix, Micron, and Samsung, with SK Hynix being Nvidia's primary HBM chip supplier.
Finally, Samsung's total DRAM chip revenue for the first half of 2023 was approximately 22.5 trillion won. Analysts estimate that about 10% of this revenue might come from HBM sales. This news has garnered market attention and left investors hopeful for Samsung's future development.
Key Points:
🌟 Samsung's 8-layer HBM3E chip has passed Nvidia's tests and is expected to start supplying in the fourth quarter of 2024.
🔥 The 12-layer HBM3E chip has not yet passed the tests, and Samsung has adjusted the design to address the challenges.
📈 HBM3E chips are expected to become the market mainstream in the second half of 2023, with the market's demand for high-performance GPUs rapidly growing.