Samsung, after a series of setbacks in developing the type of memory chips crucial for the AI market, is beginning to make progress in narrowing the gap with rival SK Hynix
Samsung, after a series of setbacks in developing the type of memory chips crucial for the artificial intelligence market, is beginning to make progress in narrowing the gap with rival SK Hynix.
It’s unusual — and humbling — for South Korea’s largest company to be playing this kind of catchup. Historically, Samsung has led the way in the memory chip market, capitalizing on its scale and engineering expertise.of replacing the head of its semiconductor division in May. The HBM market is projected to rise from $4 billion last year to $71 billion in 2027, according to Morgan Stanley. The faster Samsung gets the blessing of Nvidia, the leader in making AI accelerators, the more revenue it can reap from that increase.
While Samsung appears on track to secure Nvidia’s seal of approval by November, the company is still struggling to resolve certain issues, with unpredictable outcomes given the complexity of AI chips. There’s a chance its timeline will slip into 2025, the people said. Samsung had trouble solving this so-called thermal coupling, according to one of the people, who asked not to be named discussing confidential work. In May, the company took dramatic action: It announced Kyung Kye-hyun, the head of the semiconductor division, would step aside and Jun Young-hyun would take his place.
Yet Samsung opted to stick with TC-NCF and improve it, rather than considering other approaches. A company spokesperson said TC-NCF is “well-proven technology” that it will use in future products. Samsung has been producing HBM3 chips since the second half of last year, according to details from its quarterly reports. Companies like Google, which design their own chip capabilities, are expected to continue using HBM3 for much of this year. Samsung has started supplying HBM3 to Nvidia for its H20 chip, a product customized for China to meet US export controls.
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