Samsung Electronics and Nvidia's HBM3E quality test results draw industry attent

The industry's attention is focused on whether Samsung Electronics will pass NVIDIA's HBM3E quality test amid the rapid growth of the artificial intelligence (AI) market, which is driving a surge in demand for high bandwidth memory (HBM).

Currently, SK Hynix is virtually the exclusive supplier of HBM to NVIDIA, and there is interest in whether Samsung Electronics can improve its performance through cooperation with NVIDIA.

According to industry sources on the 4th, there were reports that Samsung Electronics had passed NVIDIA's quality test for the 5th generation HBM, HBM3E, but Samsung Electronics denied these reports.

Following this news, the stock prices of Samsung Electronics and SK Hynix showed volatility.

In response to a Reuters report in May about failing the quality test, Samsung Electronics had refuted it by stating that they were smoothly conducting tests for HBM supply with various global partners.

Additionally, in March, NVIDIA CEO Jensen Huang visited Samsung Electronics' booth and created a buzz by leaving a 'Jensen approval' sign on the HBM3E product.

With the expansion of the AI market and the surge in demand for HBM, the proportion of HBM in the DRAM market is also increasing.

Global credit rating agency S&P Global and Taiwanese market research firm TrendForce predict that the proportion of HBM in total DRAM revenue will significantly increase this year and next year.

SK Hynix, which exclusively supplied 4th generation HBM3 to NVIDIA, has begun mass-producing and supplying 5th generation HBM3E to NVIDIA.

SK Hynix plans to invest 82 trillion won in AI-related businesses, including HBM, over the next five years.

Samsung Electronics, which lost its lead in HBM3, aims to dominate the market after HBM3E.

Currently, NVIDIA's quality testing is underway, and certification is expected to be completed in the third and fourth quarters.

Samsung Electronics plans to triple its HBM supply this year compared to last year and to more than double it next year.

Micron has also announced plans to start mass-producing and supplying 5th generation HBM, HBM3E 8-layer, to NVIDIA.

NVIDIA urgently needs to diversify its supply chain to alleviate concerns over reduced bargaining power and supply shortages due to SK Hynix's exclusive supply.

Experts believe that Samsung Electronics' failure to supply HBM3 to NVIDIA had a negative impact on its stock price, but future HBM3E supply is expected to positively impact its performance.


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Samsung Electronics and Nvidia's HBM3E quality test results draw industry attention