(Bloomberg) — Nvidia Corp. is working on the certification process for Samsung Electronics Co.’s high-bandwidth memory chips, a final required step before the Korean company can begin supplying a component essential to training AI platforms.
Most Read from Bloomberg
Chief Executive Officer Jensen Huang told reporters Tuesday his company was examining the so-called HBM chips Samsung and Micron Technology Inc. are offering. Nvidia’s endorsement is needed before either company can compete with SK Hynix Inc., the leader in the booming HBM market. Hynix is already supplying Nvidia with HBM3 and more advanced HBM3e chips.
Samsung hasn’t failed any qualification tests but its HBM product needed more engineering work, Huang said during a media briefing at Computex in Taipei. His comments came after Reuters reported that Samsung was grappling with heat and power consumption issues in its HBMs, which are designed to work in tandem with Nvidia’s AI accelerators.
Samsung has fallen behind rival SK Hynix in that market, which has seen explosive growth because the chips are used for training artificial intelligence models like ChatGPT. Investors have become increasingly concerned about Samsung’s response to SK Hynix, which recently reported its fastest pace of revenue growth since at least 2010.
Samsung executives haven’t provided specific details about the Nvidia qualification process so far.
Read More: Samsung’s New Chip Chief Seeks to Rally Troops After Setbacks
–With assistance from Yoolim Lee.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
Add Comment