Samsung Electronics’ run of success is being challenged in some areas, including in some cutting-edge chips. It recently replaced the head of its semiconductor unit to navigate what it called a “crisis” affecting the industry.
Any larger scale or protracted industrial action would be a headache for the world’s biggest memory chip maker as it scrambles to catch up with rivals making high bandwidth memory (HBM) chips used in AI applications.
SK Hynix (000660.KS), opens new tab and Micron (MU.O), opens new tab are already supplying HBM chips to Nvidia (NVDA.O), opens new tab, which commands about 80% of the global graphic processing unit (GPU) market for AI applications.
Nvidia said this week that the three chip makers will provide HBM chips to the U.S. firm, though SK Hynix remains its primary supplier.
Last month, Reuters reported that Samsung’s HBM chips were yet to pass Nvidia’s tests for use, which analysts see as a crucial milestone both reputationally and in terms of profit momentum.
While struggling in parts of its chip business, Samsung dethroned Apple (AAPL.O), opens new tab to become the top smartphone seller globally in the first quarter, accounting for 20% of shipments, according to research firm Counterpoint…Read More