Samsung Electronics is showing a decline due to reports by Reuters and others that it failed a test for High Bandwidth Memory (HBM) supply to Nvidia. As of 9:30 a.m. on the 24th, Samsung Electronics is trading at 76,400 won, down 2,000 won (2.55%) from the previous day. Meanwhile, its competitor SK hynix is trading at 201,500 won, up 1,000 won (0.75%) from the previous day.
The reports indicate that Samsung Electronics has not passed Nvidia’s test for HBM, including its 4th generation product HBM3 and the 5th generation product HBM3E, which are used for artificial intelligence (AI) graphic processing units (GPUs). Issues such as heat generation and power consumption have been raised.
While Samsung Electronics has not specifically addressed these issues, they stated that the optimization process for HBM according to customer needs requires close cooperation with customers. Despite issuing a quick rebuttal that they are smoothly proceeding with tests for HBM supply with various global partners, concerns are growing that they may fall behind competitors such as SK hynix and Micron Technology.
Amid Samsung’s troubles, SK hynix is gaining strength in the HBM market, with expectations of leading in competition. SK hynix has been practically supplying HBM3 to Nvidia, which holds more than 80% of the GPU market, and started supplying HBM3E (8-stack) to Nvidia in March.
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