Samsung Electronics Co. is breaking into Nvidia Corp.’s AI chip supply chain, positioning itself to challenge SK Hynix Inc.’s dominance in the specialized memory market.
The South Korean tech giant will provide its latest high-bandwidth memory chips, known as HBM3E 8-stack, to power Nvidia’s Hopper series AI accelerators, Memory Business Division Vice President Kim Jae-jun told analysts during an earnings call. The announcement follows successful quality testing of the components.
Samsung’s strategic pivot comes as it grapples with weaker financial performance in its semiconductor unit. The division posted an operating profit of 3.86 trillion won ($2.9 billion) in the third quarter, lagging behind SK Hynix’s 7.03 trillion won ($5.2 billion).
In an unexpected move, Samsung indicated it might partner with Taiwan Semiconductor Manufacturing Co. for future memory chip production, departing from its traditional in-house approach. Industry observers view this as evidence of Samsung’s determination to gain market share in the AI chip segment.
The company plans to invest 56.7 trillion won ($42.1 billion) in facilities this year, underscoring its commitment to catching up in the competitive AI memory market.
