Nvidia approves Samsung’s 8-layer HBM3E chips because the graphics big races to shut hole with SK Hynix
Why it issues: HBM3E chips are projected to turn into a market staple, with demand anticipated to surge by way of 2027. Development will probably be fueled by generative AI and high-performance computing, each of which require superior reminiscence options to effectively handle giant knowledge volumes. As demand intensifies, so will the competitors to provide these chips to Nvidia. Samsung is positioning itself to interchange SK Hynix as its major provider, and its efforts had been not too long ago rewarded with Crew Inexperienced’s approval of its eight-layer chips.
Samsung Electronics’ eight-layer HBM3E chips have been accredited by Nvidia to be used in its synthetic intelligence processors, marking a major achievement as Samsung seeks to meet up with SK Hynix within the provide of superior reminiscence chips for AI functions. In response to three sources who spoke to Reuters, Samsung’s eight-layer HBM3E chips efficiently handed Nvidia’s exams.
Though the approval is a serious milestone, Samsung and Nvidia haven’t but signed a provide settlement. Nonetheless, it’s anticipated that such a deal will probably be finalized quickly, with provides anticipated to begin by the fourth quarter of 2024.
The approval of Samsung’s HBM3E chips supplies Nvidia with an extra provider for high-bandwidth reminiscence, doubtlessly lowering dependency on a single supply and mitigating dangers related to provide chain disruptions. This growth additionally units the stage for future collaboration between Nvidia and Samsung, which may result in additional developments in AI processor know-how.
Regardless of the progress with the eight-layer chips, Samsung’s 12-layer model of the HBM3E chips has not but handed Nvidia’s exams. In response to Reuters, this can be resulting from unresolved points associated to warmth and energy consumption, which Samsung has been addressing, although Samsung has denied these claims.
This report contrasts with an earlier story from South Korean media outlet Alphabiz, which advised that Samsung is about to solely supply the 12-layer HBM3E to Nvidia. The report indicated that Nvidia CEO Jensen Huang endorsed Samsung’s 12-layer HBM3E product by leaving his signature “Jensen Authorized” on a bodily unit, signaling Nvidia’s acknowledgment of Samsung’s HBM3E know-how.
Launched earlier this 12 months, Samsung’s 12-layer HBM3E chips are more advanced, providing a 50 p.c improve in each efficiency and capability in comparison with the eight-layer stack. Additionally they present a 34 p.c improve in common pace for AI mannequin coaching.
Samsung achieved the 12-layer stack by using superior thermal compression non-conductive movie, sustaining the identical peak specification because the eight-layer chips, which meets present necessities for HBM reminiscence packaging functions.
In response to analysis agency TrendForce, HBM3E chips are more likely to dominate the market within the latter half of the 12 months, reflecting their rising significance and adoption within the trade.
As Samsung continues to develop its HBM3E know-how, will probably be competing with SK Hynix, which has been supplying HBM3E chips to Nvidia since late March and holds a powerful place available in the market. Micron Expertise, which has introduced plans to provide Nvidia with HBM3E chips for its H200 Tensor Core GPUs, is one other key participant on this area.
SK Hynix estimates that demand for HBM reminiscence chips will improve at an annual fee of 82 percent by way of 2027. In the meantime, Samsung forecasted in July that HBM3E chips would account for 60 p.c of its HBM chip gross sales by the fourth quarter.
