Samsung to Begin HBM4 Chip Production for Nvidia Next Month

South Korean technology giant Samsung Electronics is set to begin production of its next-generation high-bandwidth memory (HBM4) chips starting next month. A source familiar with the matter confirmed the development to news agency Reuters, adding that the chips will be supplied to Nvidia, a leading manufacturer of artificial intelligence–based processors.

Samsung has long been competing with rival SK Hynix in the HBM chip market, which plays a critical role in artificial intelligence and high-performance computing applications. Supply delays last year had put pressure on Samsung’s revenue and share price, but analysts believe the launch of HBM4 production could help the company regain momentum.

Following the report, Samsung’s share price rose by approximately 2.2 percent, while shares of SK Hynix fell by around 2.9 percent. However, details regarding the volume of chips to be supplied to Nvidia have not been disclosed.

A report published by a South Korean newspaper stated that Samsung has successfully passed HBM4 qualification tests for both Nvidia and AMD, and is expected to begin supplying the chips to Nvidia as early as next month.

Meanwhile, Nvidia Chief Executive Officer Jensen Huang has said that the company’s next-generation “Vera Rubin” platform is already in full production and will be launched later this year featuring HBM4 chips.

DBTech/BMT/OR