Samsung's HBM3E supply to NVIDIA looks almost "impossible," at least this year, since the Korean giant is still unable to meet industry standards.
Samsung's HBM3E Process Still Unable To Pass NVIDIA's Qualification Tests, Supply Expected To Initiate By Next Year Now
For those unaware, Samsung couldn't secure a position in NVIDIA's supply chain, mainly because it was reported that the firm was unable to pass the qualification tests and the HBM standards set by Team Green. The Korean giant admitted this development in an investor's note, claiming that they are optimistic towards a potential breakthrough; however, a new report by the Korean media outlet Daily Korea says that Samsung's HBM3E supply to NVIDIA this year looks "virtually impossible," but things do look positive in 2025.
It is realistically impossible for Samsung Electronics to supply 8-layer and 12-layer HBM3E to Nvidia this year. The reason for the delay in supply is that we were unable to meet Nvidia's requirements for chip performance.
- Samsung via Daily Korea
Now that it's imminent that Samsung won't supply its HBM products to NVIDIA in 2024, it won't be wrong to say that in the battle for HBM superiority, Samsung's arch-rival SK hynix has taken the lead. It is said that the primary reason behind Samsung not qualifying NVIDIA's sampling is that the bar has been set very high by SK hynix, mainly due to the use of superior methodologies like the "MR-MUF," giving Samsung a hard time in gaining NVIDIA's trust and, ultimately, orders as well.
Samsung, which once held the throne in the HBM and NAND markets, seems to be losing its hold, given that competitors like SK Hynix and Micron are already supplying components to industry giants, but Samsung is nowhere to be seen. Not just this, but even in the NAND segment, SK hynix has become the "world's first" manufacturer to showcase a 321-layer+ NAND solution, while Samsung, well, the firm, is left behind again here.
However, not everything is gloomy for Samsung, given that the firm is set to be initiating HBM3E supply as early as Q1 2025 to giants like NVIDIA, and with the next-gen HBM4 process, the company is expected to gain a slight edge, given that it has its own semiconductor and memory production lines. But, given that SK hynix has already partnered up with TSMC for HBM4, the Korean giant will likely need to move swiftly to get the industry's attention.
