Samsung's premium memory chip awaits green light for Nvidia's GPUs

Samsung Electronics' premium memory chip is still in the "qualifying" process for Nvidia's graphics processing units (GPUs), according to its CEO, Jensen Huang, on Tuesday.

Nvidia CEO Jensen Huang speaks to the global press at a hotel in San Jose, California on Tuesday.[YONHAP]

Samsung Electronics' premium memory chip is still in the "qualifying" process for Nvidia's graphics processing units (GPUs), according to its CEO, Jensen Huang, on Tuesday.

During a press conference at the ongoing GTC 2024 event in San Jose, California, Huang said that Samsung's high bandwidth memory (HBM) chips are currently in the "qualifying" process, expressing his high expectations for them, as reported locally. Nvidia is "not yet" utilizing Samsung's HBM chips, he said.

"HBM is a technological miracle," he was quoted as saying, highlighting its contribution to improving energy efficiency.

HBM is considered an essential component of AI chips, enabling the processing of large volumes of data at faster speeds. Supplying them to Nvidia is highly coveted, given that the U.S. GPU maker controls the majority of the AI chip market.

SK hynix is a leader in the HBM sector. The previous day, the Korean chipmaker announced the commencement of mass production of next-generation HBM chips, dubbed the 3E, with shipments to its client, Nvidia, scheduled by the end of this month.

Samsung Electronics is diligently playing catch-up, having announced in February the development of the industry's first 12-layered HBM3E slated for mass production within the first half of this year. Micron also plays a role in this rivalry.

Huang praised Samsung as an "extraordinary" company and expressed high regard for Nvidia's partnership with both Samsung and SK hynix.

Samsung Electronics shares closed at 76,900 won on Wednesday, a 5.63 percent increase from the previous trading day.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]