Samsung Partners With Rival TSMC to Produce Next-Generation AI Memory Base Dies for Nvidia
Samsung Electronics Co., Ltd. (KRX:005930) plans to adopt 3-nanometer manufacturing technology from Taiwan Semiconductor Manufacturing Co., Ltd. (TWSE:2330) to build base dies for NVIDIA Corporation (NVDA) next-generation high-bandwidth memory chips, known as NVHBM. NVIDIA Corporation has also requested that SK Hynix and Micron use the same manufacturing process for their base dies while utilizing sixth-generation DRAM technology for core memory dies. This arrangement marks the first time competitors Samsung Electronics Co., Ltd. and Taiwan Semiconductor Manufacturing Co., Ltd. have partnered during the high-bandwidth memory production process.
The collaborative approach allows NVIDIA Corporation to standardize how its memory vendors construct NVHBM chips, helping to eliminate volatility across its AI hardware supply chain. The partnership reinforces Taiwan Semiconductor Manufacturing Co., Ltd.'s central role in the artificial intelligence chip market. Meanwhile, Samsung Electronics Co., Ltd. will continue to use its own manufacturing methodology for standard high-bandwidth memory products and custom orders for other clients.
Investors should monitor whether manufacturing capacity at Taiwan Semiconductor Manufacturing Co., Ltd. becomes constrained as NVIDIA Corporation directs additional memory suppliers to adopt the identical production path.
Key points
- Samsung Electronics Co., Ltd. will use Taiwan Semiconductor Manufacturing Co., Ltd.'s 3-nanometer technology to build base dies for NVIDIA Corporation's NVHBM chips.
- NVIDIA Corporation requested SK Hynix and Micron to also adopt TSMC's manufacturing process for base dies alongside sixth-generation DRAM core dies.
- This marks the first time rival chipmakers Samsung Electronics Co., Ltd. and Taiwan Semiconductor Manufacturing Co., Ltd. have collaborated in HBM production.
- The move aims to standardize NVHBM production across memory suppliers and reduce supply chain volatility for NVIDIA Corporation.
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How we writeDisclaimerQuestions and answers
Why is Samsung partnering with TSMC for Nvidia memory chips?
Samsung is using TSMC's 3-nanometer technology to build base dies for Nvidia's NVHBM chips, helping Nvidia standardize memory development and reduce supply chain volatility.
Which memory suppliers is Nvidia asking to use TSMC technology?
Nvidia has asked Samsung, SK Hynix, and Micron to adopt TSMC's process for base dies, while utilizing sixth-generation DRAM technology for core memory dies.
Will Samsung stop using its own HBM manufacturing processes?
No, Samsung will continue using its own production methodology for conventional HBM and custom products for other clients.