The race for high-bandwidth memory (HBM) dominance is heating up, and Samsung appears to be lagging behind. A recent report from the Korean media outlet Daily Korea reveals that Samsung’s anticipated supply of HBM3E memory to NVIDIA in 2024 is now considered “realistically impossible.” This setback impacts both the 8-layer and 12-layer versions of the crucial memory chips.
The primary reason for this delay boils down to performance. Samsung is reportedly struggling to meet NVIDIA’s stringent performance requirements for its next-generation graphics cards. A source quoted in the Daily Korea report stated unequivocally, “It is realistically impossible for Samsung Electronics to supply 8-layer and 12-layer HBM3E to NVIDIA this year. The reason for the delay in supply is that we were unable to meet NVIDIA’s requirements for chip performance.”
This struggle puts Samsung at a significant disadvantage compared to its South Korean rival, SK Hynix. SK Hynix has firmly established itself as a market leader, already supplying NVIDIA with its 8-layer HBM3E chips since March 2024, and mass production of its 12-layer HBM3E is slated for September 2024. This significant head start gives SK Hynix a considerable edge in securing lucrative contracts with major players like NVIDIA.
Industry analysts further corroborate Samsung’s challenges. Kim Gwang-jin, a researcher at Hanwha Investment & Securities, highlighted the considerable gap in market entry times between Samsung and SK Hynix for both 12-layer HBM3E and the upcoming HBM4 (6th generation) products. While Samsung hinted at the possibility of supplying 8-layer HBM3E in the fourth quarter during its Q3 earnings call, Kim’s assessment casts doubt on the feasibility of this timeline given the existing performance gap. Previously reported issues surrounding heat and power consumption within Samsung’s HBM3E chips also contribute to the delays.
The situation marks a significant blow to Samsung’s aspirations in the high-performance computing market. While NVIDIA was previously reported to be working diligently to certify Samsung’s HBM3E memory, the current reality suggests that this crucial partnership will likely have to wait until next year, solidifying SK Hynix’s position at the forefront of the HBM market for the foreseeable future.
