Samsung has entered the Nvidia computing card supply chain, HBM3 will be available as soon as October

Earlier reports suggested that due to a surge in demand for the A100 and H100 data center GPUs, and with the manufacturing and packaging capacity of Taiwan Semiconductor Manufacturing Company (TSMC) being constrained, NVIDIA entered negotiations with Samsung, potentially seeking to distribute some of the workload. Samsung’s ambitions weren’t solely focused on the packaging orders; they also aspired to secure a portion of the HBM3 orders, historically dominated by SK Hynix.

According to DigiTimes, Samsung has forged an agreement with NVIDIA and is set to commence the supply of HBM3 chips as early as October 2023. Insiders in the industry opine that, should Samsung seamlessly integrate into NVIDIA’s compute card supply chain, it is projected that by 2024, they might seize up to 30% of NVIDIA’s HBM3 orders.

Previously, Samsung presented NVIDIA with a novel proposal. Currently, a “dual-sourcing” strategy seems more advantageous for the latter, maximizing the production capability of their compute cards. It’s understood that last month, Samsung furnished NVIDIA with HBM3 chip samples intended for validation in several compute cards, including the H100, and by August 31st, these samples passed pertinent tests. Earlier claims also noted that Samsung inked an agreement with AMD to provide HBM3 and packaging technology for the Instinct MI300 series. Although SK Hynix has predominantly steered the HBM storage chip market, Samsung’s recent aggressive strides appear to have borne fruit.

Buoyed by these auspicious revelations, Samsung Electronics witnessed its share price swell by 6.1% on September 1st, 2023, marking its most substantial increase since January 2021. Multiple financial institutions have proclaimed an elevation in Samsung’s target share price while sustaining a “buy” rating.