NVIDIA Gives Samsung a Huge Order for HBM
Samsung Has Committed to Supplying It Reports indicate that beginning the next month, Samsung Electronics will begin receiving HBM orders from NVIDIA, which may mark a change for the better in the memory sector of the Korean multinational conglomerate.
The High-Bandwidth Memories (HBM) Agreements That Samsung Has Signed With NVIDIA and AMD Will Mark the Beginning of a Financial Revival For Samsung’s Memory Division, Credits to AI.
For some time now, there have been rumblings of a prospective relationship between NVIDIA and Samsung, and it is probable that Samsung has won NVIDIA’s trust in the HBM devices it makes.
These rumblings have been going on for some time now. next the completion of NVIDIA’s fourth and last quality test on Samsung’s HBM memory, the two companies have come to an agreement on the conditions of a supply contract, which may be put into action as soon as the next month.
The test was NVIDIA’s final quality test on Samsung’s HBM memory. NVIDIA has been able to enhance its production of artificial intelligence graphics processing units (GPUs) thanks to the involvement of SK Hynix and Samsung as HBM suppliers for the company.
The company has been unable to fulfil orders for artificial intelligence graphics processing units (GPUs) like the H100s, which is the major reason why the admission of Samsung into NVIDIA’s panel of suppliers was an inevitability. This is because of the excessive demand that has been placed on the company’s products. NVIDIA has reached out to Samsung in an attempt to diversify the businesses that make up the firms that make up its supply chain.
This is because HBM is generally recognised as being one of the most critical components. It seems unlikely that NVIDIA will be able to reach its objective of producing between 1.5 and 2.0 million H100s by the year 2024 if the company does not have access to a diversified pool of vendors. The availability of a varied selection of providers is essential to NVIDIA’s success in achieving this objective.
Samsung has found itself in a vulnerable situation when it comes to gaining the trust of companies in the products it sells. Not only would the memory business profit from the acquisition of a large part in NVIDIA’s HBM orders, but the firm’s foundry service may also be put to use in the manufacturing of AI GPUs if the company is successful in making the acquisition.
This is due to the fact that Samsung had earlier offered to NVIDIA that NVIDIA handle all manufacturing procedures of Samsung’s AI GPUs. Additionally, the memory sector will profit from the significant share in NVIDIA’s HBM orders, which will allow for increased sales. It is projected that Samsung’s market share in HBM orders might increase to more than 50 percent, which would put it in a position where it would be able to surpass rivals like as SK Hynix and Micron.
It has been reported that in addition to NVIDIA, Samsung has agreed to build HBM for AMD’s Instinct AI GPUs. This development puts the company in a more advantageous position than it was before in. Analysts are of the opinion that Samsung will continue to hold the market leadership position in the fourth quarter of this year, which may result in a large increase in the amount of revenue that the firm generates in each quarter.
The latest finding is fantastic news for Samsung’s memory company, which has been suffering from dropping financial quarters for quite some time now. The memory industry has been suffering from declining financial quarters for quite some time now. The “boom” in artificial intelligence will, in reality, assist to raise revenue, therefore the fact that this section will benefit from it is fantastic news.
Despite the fact that it has earned the faith of industry leaders, it is still reliant on Samsung’s plan for the production of HBM and whether or not the company is able to effectively manage huge orders. This is the case even if Samsung has acquired the confidence of industry leaders.
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