Samsung’s 12-Layer HBM3E Passes Nvidia Certification, Analysts Weigh In

CNBC AI News, August 12 – NVIDIA, the dominant force in AI chips, has reportedly struck a deal with Samsung Electronics to secure a supply of its 12-layer stacked HBM3E memory, according to media reports.

The alleged agreement outlines that NVIDIA will receive an initial tranche of between 30,000 and 50,000 units of Samsung’s high-bandwidth memory. These HBM3E modules, featuring the advanced 12-layer stacking technology, are reportedly destined for use in liquid-cooled server systems, a critical component in handling the thermal demands of high-performance AI workloads.

Samsung Electronics, when contacted, stated that it “cannot confirm” the existence of such an agreement, leaving the door open to speculation.

The Korean tech giant has been dogged by rumors of HBM3E validation by NVIDIA, although previous claims have proven premature.

As recently as June, reports suggested that Samsung had yet to pass NVIDIA’s third round of 12-layer HBM3E certification, with the fourth attempt reportedly slated for September. Analysts cautioned that the timeline might be subject to further delays.

Despite the uncertainty, Wall Street seems cautiously optimistic.

Morgan Stanley, in a recent research note, suggested that Samsung is expected to complete the 12-layer HBM3E certification process by the end of August, paving the way for volume production for NVIDIA in the fourth quarter.

UBS Group echoes this sentiment, predicting that Samsung is likely to secure certification and begin shipments in the fourth quarter.

Goldman Sachs, in their own analysis, added fuel to the fire: “The company also mentioned that it expects its HBM3E sales mix to reach a high of 90% in the second half of the year, which we believe implies full-scale shipments of HBM3E 12-high to a major customer.”

Industry observers note that Samsung is actively working to reduce its HBM3E production costs to enhance its competitive position in securing NVIDIA orders, a crucial battleground in the high-stakes AI memory market.

Samsung Electronics stated, “Considering the upward trend in general-purpose DRAM prices in the second half of the year, we expect the profit gap between HBM3E and general-purpose DRAM to narrow rapidly,” signaling a potential boost to its HBM profitability.