Nvidia CEO Jensen Huang confident Samsung will overcome HBM production challenges, produce AI memory chips

Nvidia's CEO Jensen Huang expressed confidence that Samsung will overcome challenges in producing high-bandwidth memory chips for AI systems, despite falling behind rivals. Samsung's recent results were disappointing, but Huang believes they are committed to success in this competitive market.

Bloomberg
Published8 Jan 2025, 10:58 AM IST
The US in April 2024 announced grants of up to $6.4 billion to South Korean semiconductor giant Samsung to produce cutting-edge chips in Texas.
The US in April 2024 announced grants of up to $6.4 billion to South Korean semiconductor giant Samsung to produce cutting-edge chips in Texas. (Photo by Jung Yeon-je / AFP)

Nvidia Corp. head Jensen Huang said that Samsung Electronics Co. has faced difficulties producing a new type of memory chip for AI systems, but he expressed confidence that the partner company would overcome the challenges.

The technology in question — the latest type of high-bandwidth memory, or HBM — is a vital part of new artificial intelligence systems that feature Nvidia chips. Samsung has been slower than rivals such as SK Hynix Inc. in producing HBM that meets Nvidia’s standards, and Huang acknowledged those challenges during a press briefing at the CES conference in Las Vegas Tuesday.

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‘They Can Do It’ Says Jensen Huang

“They have to engineer a new design,” Huang, Nvidia’s co-founder and chief executive officer, said at the event. “But they can do it. They are working very fast. They’re very committed to do it.”

Samsung is the largest overall maker of memory chips, but it’s fallen behind rivals in the lucrative AI market. That weighed on its latest quarterly results, released Wednesday morning, which fell well short of analysts’ estimates.

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Sales of AI computing systems powered by Nvidia have exploded over the past two years. Nvidia’s chips serve as the heart of the machines, which create AI models by bombarding the software with data. Memory chips are key to the operation because they supply the processors with information.

Trying to increase the speed and capacity of memory — and tightly integrate the components with processors — has added new levels of complexity to production of the chips. Samsung has been working through those obstacles.

“They’re going to succeed — no question,” Huang said. “I have confidence that Samsung will succeed with HBM.”

Disclaimer: This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

Key Takeaways
  • Nvidia’s chips are integral to AI systems, driving demand for advanced memory solutions.
  • Samsung faces production challenges but is committed to overcoming them to compete in the AI market.
  • Jensen Huang’s confidence reflects the importance of partnerships in technology advancements.

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First Published:8 Jan 2025, 10:58 AM IST
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