Nvidia Approves Samsung's HBM3 Chips for China-market Processor
Nvidia approves Samsung's HBM3 chips for use in Chinese market processor. Samsung's HBM3 chips initially integrated into Nvidia's H20 GPU for Chinese market. Uncertainty remains regarding the extension of Samsung's HBM3 chips to other Nvidia processors.
However, this approval is somewhat limited, with Samsung's HBM3 chips initially designated for use in a less advanced Nvidia graphics processing unit (GPU) known as the H20, tailored specifically for the Chinese market to comply with U.S. export regulations, the sources revealed.
The sources indicated that it remains uncertain whether Nvidia will extend the use of Samsung's HBM3 chips to other AI processors or if further testing will be required before such integration can take place.
Furthermore, Samsung is still in the process of meeting Nvidia's criteria for their fifth-generation HBM3E chips, with ongoing testing being conducted, the sources mentioned on condition of anonymity due to the sensitivity of the matter.
Both Nvidia and Samsung have refrained from providing comments on this development.
HBM technology, introduced in 2013, involves vertically stacking memory chips to enhance efficiency by conserving space and reducing power consumption. This technology plays a crucial role in GPUs for artificial intelligence applications, facilitating the processing of vast amounts of data generated by complex software.
Nvidia's endorsement of Samsung's HBM3 chips comes at a time of surging demand for advanced GPUs driven by the rise of generative AI, a trend that has led Nvidia and other AI chipset manufacturers to face challenges in meeting market needs.
With only three primary manufacturers of HBM - SK Hynix, Micron, and Samsung - and a scarcity of HBM3 in the market, Nvidia is eager to diversify its supply chain by having Samsung meet its quality standards. The necessity for increased access to HBM3 is expected to escalate as SK Hynix, the leading producer in this sector, plans to boost HBM3E production while reducing HBM3 output, according to insider sources.
Samsung is anticipated to commence supplying HBM3 for Nvidia's H20 processor as early as August, according to sources familiar with the matter. The H20 represents the most advanced among three GPUs tailored by Nvidia for the Chinese market following tightened export restrictions in 2023, aimed at restricting advancements in supercomputing and AI that could potentially benefit the Chinese military.
In compliance with U.S. sanctions, the computing capabilities of the H20 have been significantly limited compared to the non-China market version, the H100.
Despite a slow start upon its initial release earlier this year, with pricing positioned below a competing chip from Chinese tech giant Huawei, the H20 is now experiencing rapid sales growth, according to separate sources.
In contrast to Samsung, SK Hynix serves as Nvidia's primary HBM chip supplier and has been providing HBM3 since June 2022. Additionally, SK Hynix commenced HBM3E shipments in late March to an undisclosed customer, believed to be Nvidia, according to industry insiders.
Micron has also confirmed its intention to supply Nvidia with HBM3E chips.
Nvidia approves Samsung's HBM3 chips for use in Chinese market processor
Samsung's HBM3 chips initially integrated into Nvidia's H20 GPU for Chinese market
Uncertainty remains regarding the extension of Samsung's HBM3 chips to other Nvidia processors
Source: REUTERS