Samsung HBM chips fail Nvidia exams

Seoul/Singapore. Samsung Electronics’ newest high-bandwidth reminiscence (HBM) chips 005930.KS haven’t but handed Nvidia NVDA.O testing to be used within the US firm’s AI processors resulting from warmth and energy points energy, mentioned three individuals knowledgeable of the issues.

The problems have an effect on Samsung’s HBM3 chips, that are the fourth-generation HBM normal at present most generally utilized in graphics processing items (GPUs) for synthetic intelligence, in addition to the fifth-generation HBM3E chips that the South Korean tech large and its Rivals are bringing it to market this yr, they famous.

The explanation why Samsung didn’t go Nvidia’s exams are recognized for the primary time.

Samsung declared to Reuters that HBM reminiscence is a personalized product that requires “optimization processes tailor-made to buyer wants” and added that it’s optimizing its merchandise in shut collaboration with them. He declined to touch upon particular shoppers.

In separate statements after Reuters First printed this report, Samsung mentioned that “claims about failures resulting from warmth and energy consumption aren’t true,” and that testing was “progressing easily and as deliberate.”

Nvidia declined to remark.

HBM – a kind of normal dynamic random entry reminiscence or DRAM first produced in 2013 through which chips are stacked vertically to save lots of house and scale back energy consumption – helps course of large quantities of knowledge produced by complicated AI functions . As demand for classy GPUs has skyrocketed amid the rise of generative AI, so has demand for HBM.

Satisfying Nvidia, which controls about 80 % of the worldwide GPU marketplace for AI functions, is seen as key to the long run development of HBM makers, each when it comes to status and driving income.

Samsung has been making an attempt to beat Nvidia’s exams for HBM3 and HBM3E since final yr, in accordance with the three sources. In keeping with two of them, the outcomes of a current failed check of Samsung’s 8- and 12-layer HBM3E chips got here out in April.

It was not instantly clear whether or not the issues will be simply fastened, however the three sources mentioned that Nvidia’s failures to fulfill necessities have raised considerations within the business and amongst traders that Samsung may fall additional behind its rivals SK Hynix 000660.KS and Micron Know-how MU.O at HBM.

The sources, two of whom had been knowledgeable of the matter by Samsung officers, spoke on situation of anonymity as a result of the knowledge was confidential.

Samsung shares fell 2 % in early buying and selling Friday, barely under the broader market.

In distinction to Samsung, home rival SK Hynix is ​​the principle provider of HBM chips to Nvidia and has been supplying HBM3 since June 2022. It additionally started supplying HBM3E in late March to a buyer it declined to establish. The shipments had been destined for Nvidia, in accordance with sources.

Micron, the one different main HBM maker, has additionally mentioned it can provide HBM3E to Nvidia.