Nvidia Approves Samsung's HBM3E Chips for AI, but SK hynix Remains Leader

Nvidia (NASDAQ:NVDA) has approved Samsung Electronics' (KS:005930) 8-layer HBM3E chips for artificial intelligence applications, Bloomberg reported. The chips will be used in Nvidia’s AI products for China, which are less advanced than its flagship models.

While the approval marks a step forward for Samsung, it continues to lag behind competitors like SK Hynix (KS:000660) and Micron Technology (NASDAQ:MU) in high-bandwidth memory (HBM) technology. SK Hynix remains Nvidia’s exclusive supplier for its most advanced AI chips, particularly those in the upcoming Blackwell series, utilizing 12-layer HBM3E chips.

Samsung has struggled to compete in the advanced memory chip market. Its weaker Q4 earnings reflect this challenge, as it failed to match the high demand seen by SK Hynix, which reported a strong quarter driven by AI chip sales. The latter’s dominance in supplying cutting-edge memory technology has positioned it as the leader in the AI-driven semiconductor market.

Despite this, Samsung’s approval from Nvidia signals progress in the AI chip race. However, its technological gap with SK Hynix and Micron underscores the challenges it faces in regaining leadership in the competitive HBM sector.