Investing.com-- Nvidia has approved a version of Samsung Electronics’ fifth-generation advanced high-bandwith memory chips for artificial intelligence applications, Bloomberg reported on Friday.
NVIDIA Corporation (NASDAQ:NVDA) approved Samsung Electronics' (KS:005930) 8-layer HBM3E chips- a less advanced version of the chip category- in December, the Bloomberg report said, citing people with knowledge of the matter.
The chips will be used by Nvidia in its specialized AI chip offerings for China, which are less advanced than its flagship offerings.
While the approval does represent a positive for Samsung, which has been struggling to match HBM offerings from its rivals such as SK Hynix Inc (KS:000660) and Micron Technology Inc (NASDAQ:MU), the company is still lagging behind its peers in terms of advanced technology.
Specifically, the 8-layer HBM3E chips being supplied are still less advanced than SK Hynix’s 12-layer HBM3E chips, which are used in Nvidia’s most advanced AI chips- particularly its upcoming Blackwell line.
SK Hynix is the sole supplier of the advanced HBM chips to Nvidia, and had recently clocked a bumper fourth-quarter profit on AI-fueled chip demand. Its fourth-quarter profit also surpassed earnings from Samsung for the quarter.
Samsung, on the other hand, clocked softer-than-expected preliminary Q4 earnings as it largely lagged its rivals in supplying advanced memory chips.