Samsung Aims to Pass NVIDIA's HBM3E Quality Test by June

In March 2024, Samsung successfully passed the evaluation process of global GPU leader NVIDIA for its High Bandwidth Memory (HBM) products, marking a significant milestone in its pursuit of regaining momentum in the AI hardware sector. According to industry sources, Samsung's HBM met NVIDIA's minimum requirements during a rigorous testing phase.

The company is now optimistic that this approval will pave the way for its HBM to pass further quality assessments conducted by potential clients. These evaluations typically examine the memory's electrical and physical characteristics, reliability under thermal stress, operational lifespan, and resistance to unexpected environmental conditions.

Samsung's flagship back-end processing facility in Onyang plays a critical role in this effort. It is responsible for packaging and testing DRAM, NAND flash, CMOS image sensors, and various other semiconductor components.

NVIDIA is currently using 12-layer HBM3E in its latest AI accelerators, with most of the supply coming from SK Hynix—Samsung's key competitor in the HBM space. Due to this competitive gap, Samsung's market share and profitability in the HBM sector have declined.

Financial data reflects this pressure: Samsung's semiconductor division reported an operating profit of 6.5 trillion KRW in Q2 2024, which dropped to 3.9 trillion KRW in Q3 and further to 2.9 trillion KRW in Q4.

The June quality test also coincides with the one-year mark of Jun Young-hyun's leadership of Samsung's semiconductor division. As head of both memory and HBM development, Jun has committed to restoring Samsung's competitiveness in the DRAM market. Earlier this year, in February, Samsung presented NVIDIA with samples of its upgraded 10nm-class (1b) DRAM.

Looking ahead, Samsung is planning to launch HBM4—the successor to HBM3E—later this year.