South Korean tech giant Samsung has launched an aggressive push into the HBM3E memory market, a critical market for AI GPUs. Bidding on Nvidia’s H20 AI GPU for the Chinese market, Samsung demanded a price 20% to 30% lower than its rival SK Hynix. This has intensified competition in the HBM memory market and suggests Samsung is seeking to reassert its position in this market.
Samsung wreaks havoc on the HBM3E memory market
According to South Korean SEdaily, Samsung’s competitive price offer is the reason for the disagreement between Nvidia and SK Hynix in pricing negotiations. Industry sources indicate that Nvidia is waiting for Samsung’s HBM3E and even more advanced HBM4 products to pass quality tests. Nvidia is reportedly unwilling to reach a final price agreement with SK Hynix before these tests are completed.
Samsung is expected to complete Nvidia’s HBM3E quality testing and begin deliveries later this month. If this happens, it could shake things up in the HBM market. With this move, the company aims to gain a larger share of the HBM market. Company executives are reportedly in talks with major Silicon Valley companies to increase Samsung’s influence in this market.
Meanwhile, Nvidia is required to pay 15% of US sales for its H20 GPU, which is specifically produced for China. This increases pressure on Nvidia to reduce its costs in China. In this environment, Samsung’s low price offer presents a significant opportunity for Nvidia.
Samsung’s move appears unlikely to be limited to HBM3E. Previous reports that the company has also received approval from Nvidia for HBM4 memory indicate Samsung’s intention to make a significant comeback in the HBM market by 2026.
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