Samsung to Begin HBM3E Supply to Broadcom in H2 2025

According to reports, Samsung Electronics is preparing to supply fifth-generation high-bandwidth memory (HBM3E) to Broadcom starting in the second half of 2025. Industry insiders reveal that Samsung is expected to account for over 50% of Broadcom's HBM3E supply chain, positioning the company as a major player in this segment.

However, Samsung's efforts to deliver HBM3E to another major client, NVIDIA, have encountered significant obstacles. According to Businesspost, Samsung initially planned to provide NVIDIA with 12-layer HBM3E products in Q2 2023, but actual shipments lagged, with estimates indicating less than 10% delivery by Q4. Analysts point to three main challenges in meeting NVIDIA's requirements: thermal standards, signal integrity, and manufacturing yields.

NVIDIA's thermal requirements for HBM are particularly demanding—roughly twice as stringent as Broadcom's standards. While Broadcom's AI chips are largely customized with lower heat thresholds, NVIDIA's general-purpose AI chips must maintain high efficiency across diverse environments, resulting in higher power consumption and heat output. In addition, Samsung's HBM has shown signal degradation when paired with NVIDIA's NVLink high-speed communication system, likely due to DRAM performance limitations. Finally, lower production yields of Samsung HBM have made it difficult to meet contract volumes, also affecting pricing leverage.

To address these issues, Samsung is redesigning its DRAM to improve performance and actively working to increase production yields, aiming to meet its clients' rigorous standards. Experts note that Samsung's strong position in Broadcom's HBM3E supply chain could lay the groundwork for securing more high-value orders in the future.