Samsung Electronics Corporation The company (OTC: SSNLF ) is reportedly preparing to begin production of next-generation high-bandwidth memory chips as it seeks to supply NVIDIA Corporation (NASDAQ: NVDA ) and shrink with SK hynix.
Citing a person familiar with the matter, Reuters reported that Samsung plans to start production of HBM4 as early as next month and is expected to supply it to Nvidia.
The move marks a key step in Samsung’s efforts to regain momentum in the high-bandwidth memory market after production delays hurt its earnings and stock price last year.
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HBM chips are a critical component of advanced AI accelerators, a field in which demand is surging as generative AI rapidly expands.
While the sources declined to reveal shipment volumes or contract details, South Korea’s Korea Economic Daily reported that Samsung has reached out to Nvidia and AMD (Nasdaq: AMD).
Reports say the company is preparing to start shipping to Nvidia next month.
Samsung’s main rival SK Hynix currently dominates the HBM market and has been the main supplier of advanced memory chips for Nvidia’s AI processors.
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The company said in October that it had completed supply negotiations with major customers for next year.
SK hynix is also expanding production capacity.
Earlier this month, an executive told the publication that the company would begin deploying silicon wafers into its new factory. M15X The manufacturing plant in Cheongju, South Korea, will produce HBM chips next month.
However, it is unclear whether HBM4 will be included in the initial output.
As Nvidia prepares to launch its next-generation artificial intelligence platform, timing is of the essence, Vera Rubinlater this year.
CEO of NVIDIA Jen-Hsun Huang It said earlier this month that the platform was in full production and would be paired with HBM4 memory.
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Samsung and SK Hynix are scheduled to announce fourth-quarter earnings on Thursday.