Samsung to Supply HBM3 to NVIDIA from January

In a recent industry development, it has been reported that Samsung Electronics is set to commence the supply of high-bandwidth memory, HBM3, to NVIDIA starting January of the upcoming year. 

This cutting-edge HBM3 technology is slated for integration into NVIDIA's graphics processing units (GPUs). It's noteworthy that prior to this, SK Hynix held the exclusive role of supplying HBM3 to NVIDIA, while Samsung Electronics supplied limited quantities to AMD in the United States.

NVIDIA currently commands a dominant position in the artificial intelligence (AI) GPU market, boasting a market share exceeding 90%. Samsung Electronics is poised to significantly ramp up its HBM supply to NVIDIA from the commencement of next year. Anticipated expansion in HBM supply to GPU companies early next year is expected to yield notable performance improvements in the Semiconductor Device Solutions (DS) division, which oversees semiconductor operations.

As Samsung, a formidable player, competes with SK Hynix in this domain, industry observers forecast that Samsung Electronics may capture a market share exceeding 50% in the HBM segment by the second half of the upcoming year.

Analyzing the financial landscape, Kim Seon-woo, a researcher at Meritz Securities, predicts that Samsung Electronics' DRAM business sales will surpass 100 trillion Korean won in the second quarter of the upcoming year, with sales in the third quarter exceeding 130 trillion Korean won. The anticipated increase in HBM supply is also expected to have a positive impact on operating profits. Kim further predicts that the Samsung Electronics DS division is poised to achieve an operating profit close to 150 trillion Korean won in the second half of the upcoming year.