Google to Drop Samsung HBM3E for Micron After Failing Tests

According to reports, Samsung's HBM3E project is facing significant challenges, as the company is struggling to secure new customers and reportedly losing existing ones to competitors. Industry sources indicate that Samsung's HBM (High Bandwidth Memory) technology has not yet met key industry standards, prompting major clients like Google to shift their HBM3E orders to other manufacturers.

Samsung entered the HBM market later than its rivals, including SK Hynix and Micron, both of which have already established strong partnerships with leading tech companies. Initially, reports that NVIDIA might incorporate Samsung into its HBM supply chain raised hopes within the company. However, the prospects of collaboration now appear increasingly uncertain.

In addition to NVIDIA, Google was reportedly one of Samsung's key HBM3E clients, using the memory in combination with its Tensor Processing Units (TPUs). Recently, Google informed MediaTek, its partner in developing a new AI accelerator, about changes in its supply chain—signaling a broader shift from Samsung's HBM3E products to Micron's offerings. Micron has reportedly solidified its leadership in the HBM market, supplying memory solutions to NVIDIA and other major technology companies.

While NVIDIA had expressed interest in adopting Samsung's HBM3E for China-specific AI chips like the H20 AI GPU, new export restrictions have made Samsung's inclusion in NVIDIA's supply chain increasingly unlikely. Furthermore, Samsung's earlier HBM technologies, such as HBM2 and HBM2E, which once dominated the market, are now being replaced by domestic alternatives in China.