Samsung Electronics’ latest high-capacity memory chips designed for fast data transfer are facing challenges in meeting performance standards set by Nvidia (NVDA (NASDAQ:NVDA)) for integration into artificial intelligence processors, according to sources familiar with the matter cited by Reuters on Friday. These challenges stem from issues related to excessive heating and power consumption.
The difficulties mentioned encompass Samsung’s fourth iteration of the High-Bandwidth Memory (HBM) chips, representing the industry standard primarily used in graphics processing units for artificial intelligence applications, as well as the upcoming HBM3E chips. Samsung and its competitors aim to release these fifth-generation chips into the market later this year.
According to Reuters, this disclosure marks the first public instance where Samsung’s inability to meet Nvidia’s testing criteria has been announced.
Samsung conveyed to the news agency that HBM is a specialized memory product requiring “optimization efforts to be synchronized with customers’ specific requirements” and emphasized ongoing efforts to collaborate directly with customers to enhance their products.
In a separate statement addressing allegations of product failure due to thermal and power issues, the South Korean electronics giant stated that the testing process was proceeding smoothly and on schedule.
Financial analysts at Wells Fargo interpreted the report, suggesting that this situation could be advantageous for Micron (MU), another leading supplier of high-capacity memory chips.
Analysts also expressed concerns that reports could reignite worries about supply dynamics for AMD (NASDAQ:AMD) regarding HBM3. The semiconductor company recently announced that it has secured sufficient supply to surpass its revenue target of over $4 billion for MI300A/X graphics processing units in 2024.
“At the beginning of this year, there were suggestions that AMD’s MI300 graphics processing units were designed to be compatible with HBM3E, leading us to believe that MI300 could be upgraded with HBM3E in the second half of 2024. We believe Micron’s HBM3E products could be certified,” they said.
Source: investing.com
