Recent news indicates that due to Samsung’s HBM3E memory failing to pass Nvidia’s qualification tests, Google has abandoned using Samsung’s product and has instead chosen Micron as its HBM3E memory supplier. This shift has a significant impact on the semiconductor industry, particularly the high-bandwidth memory (HBM) market.
Samsung is facing severe challenges in its HBM business. For several quarters, Samsung has been striving to pass Nvidia’s qualification tests but has consistently failed. Sources suggest that Samsung’s HBM3E memory cannot meet industry standards due to issues such as heat dissipation and power consumption. These problems have not only made it difficult for Samsung to attract new customers, but existing customers are also being lost. Samsung was a late entrant to the HBM market, starting its efforts only after competitors SK Hynix and Micron had already established partnerships with major players. Although there was previous news suggesting that Nvidia might include Samsung in its supply chain, offering a glimmer of hope, it now appears that cooperation between the two is increasingly unlikely.
Google, one of Samsung’s HBM3E memory customers, originally intended to use it in its own AI chips (TPUs). Now, Google is collaborating with MediaTek to develop new AI accelerators and has informed MediaTek of the supply chain change regarding HBM3E memory suppliers, switching from Samsung to Micron.
Micron holds a dominant position in the HBM supply chain, not only being Nvidia’s primary supplier but also serving numerous other top companies. Its HBM3E memory products meet performance standards and exhibit high stability, satisfying Google’s stringent requirements for AI chip applications. At the same time, Micron’s strong manufacturing capabilities and well-established supply chain management system can provide Google with a stable memory supply, which is crucial for Google’s large-scale deployment of AI servers and data centers.
Furthermore, Samsung had hoped to provide HBM3E memory for Nvidia’s specific AI chips aimed at the Chinese market (such as the H20 AI GPU). However, with the introduction of new export restrictions, Samsung’s chances of entering Nvidia’s supply chain have become even slimmer. While Samsung once held a dominant position in products like HBM2 and HBM2E, it is now also facing competition from Chinese alternative products. It can be said that Samsung’s HBM business is facing a severe test.
Google’s replacement of its HBM3E memory supplier not only reflects Samsung’s shortcomings in HBM technology but also highlights the advantages of competitors like Micron in this field.
In the future, if Samsung wants to regain its footing in the HBM market, it needs to increase its investment in technological research and development, address the existing problems with its products, and rebuild customer trust and market share. Companies like Micron, on the other hand, may seize this opportunity to further consolidate their position in the HBM market, driving new changes in the industry’s competitive landscape.