Samsung Electronics’ fourth-generation high bandwidth memory (HBM3) chips have been approved by Nvidia for use in its processors for the first time, according to three individuals familiar with the situation. However, this approval is limited as Samsung’s HBM3 chips will only be used in the less advanced Nvidia graphics processing unit (GPU), the H20, developed for the Chinese market to comply with U.S. export controls.
It remains uncertain whether Nvidia will incorporate Samsung’s HBM3 chips in its other AI processors, or if additional tests will be required. Samsung has not yet met Nvidia’s standards for fifth-generation HBM3E chips, and testing of these chips is ongoing. Both Nvidia and Samsung declined to comment on these developments.
High Bandwidth Memory (HBM) is a type of dynamic random access memory (DRAM) first produced in 2013. HBM chips are vertically stacked to save space and reduce power consumption, making them essential for GPUs used in artificial intelligence, as they process large amounts of data. Nvidia’s approval of Samsung’s HBM3 chips comes amid rising demand for advanced GPUs driven by the generative AI boom. Currently, there are only three main HBM manufacturers: SK Hynix, Micron, and Samsung.
Due to the short supply of HBM3, Nvidia is keen to see Samsung clear its standards to diversify its supplier base. SK Hynix, the leading HBM manufacturer, plans to increase its HBM3E production and reduce HBM3 output, highlighting Nvidia’s need for more HBM3 suppliers. SK Hynix declined to comment on this matter.
Samsung, the world’s largest memory chip maker, has been attempting to pass Nvidia’s tests for HBM3 and HBM3E since last year but has faced issues related to heat and power consumption. Despite these challenges, Samsung could begin supplying HBM3 for Nvidia’s H20 processor as early as August, according to sources.
Nvidia’s H20 is one of three GPUs tailored for the Chinese market after U.S. export restrictions were tightened in 2023 to limit supercomputing and AI advancements that could benefit the Chinese military. The H20’s computing power is significantly capped compared to the version sold outside China, the H100. Although the H20 initially struggled in the market, its sales are now growing rapidly.
| Manufacturer | HBM3 Supply to Nvidia | HBM3E Supply to Nvidia |
|---|---|---|
| SK Hynix | Since June 2022 | Since late March |
| Micron | Pending | Planned |
| Samsung | Expected by August | Testing ongoing |
SK Hynix has been the main supplier of HBM chips to Nvidia, supplying HBM3 since June 2022 and HBM3E since late March to an undisclosed customer, believed to be Nvidia. Micron has also announced plans to supply Nvidia with HBM3E.
Featured Image courtesy of Tech Wire Asia
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