South Korean media proud: Samsung memory becomes a "super supplier" ... NVIDIA begs for early delivery

It is reported that the strongest AI chipmaker, NVIDIA, has requested Samsung Electronics to supply the 6th generation high-bandwidth memory (HBM4) in advance. It is reported that Samsung Electronics is currently conducting final quality inspections to ensure mass production and shipment of HBM4 by the end of February, but NVIDIA has requested immediate delivery regardless of the test results. Due to the accelerated competition from AI chip design competitors such as AMD and Google, NVIDIA has started to accelerate ensuring HBM4 supply. Some analysts say that South Korean memory companies have risen to become "super suppliers" due to the "super cycle" (extremely prosperous period) of memory.

Indispensable K-memory status

It is reported that NVIDIA recently requested Samsung Electronics to supply HBM4 before completing reliability assessment and quality evaluation. Currently, Samsung Electronics and SK Hynix are both conducting final quality tests on HBM4. Analysts said that since the product quality has been partially verified, NVIDIA requested to skip detailed testing and expedite the supply. Previously, Samsung Electronics was worried about whether HBM3E could pass NVIDIA's quality verification, but its position has changed dramatically just one generation apart. NVIDIA will use HBM4 in its next-generation AI chip "Rubin."

Some analysts say this reflects the indispensable status of South Korean memory companies in the global AI-chip supply chain. In the past, the dominance of the AI ecosystem lay with GPU manufacturers like NVIDIA or large tech companies operating AI large models. However, as AI competition intensifies, the situation has changed. Because without HBM supporting algorithms, it is impossible to drive the most advanced AI accelerators. Ensuring HBM supply directly relates to AI chip launch and data center expansion, which has allowed South Korean memory companies like Samsung Electronics and SK Hynix to grasp the "throat" of the global AI industry.

According to market research firm Counterpoint Research, SK Hynix is expected to account for 54% of the global HBM4 market this year, while Samsung Electronics will account for 28%, with the two together exceeding 80%. Kim Dong-won, head of KB Securities' research department, said: "The recent attitude of Samsung Electronics and SK Hynix is similar to that of TSMC, which holds the majority of global cutting-edge chip production shares and can arbitrarily raise prices," "Previously, NVIDIA's graphics processing units (GPUs) were essential assets in the AI era, and this scope is now expanding to memory."

In addition, the shortage of general-purpose memory caused by the concentrated efforts of memory companies to produce HBM has increased the bargaining power of memory companies. According to market research company DRAMeXchange, the price of consumer DRAM in January 2025 was $1.35, while it surged to $11.5 in January this year, an increase of 750%. At the same time, NAND flash prices also rose from $2.18 to $9.46. On January 31, NVIDIA CEO Huang Renxun stated at a dinner with executives from Taiwan's supply chain companies: "We need a lot of memory this year," "Due to the huge demand, the entire supply chain may face difficulties."

K-chip performance soaring

The shift in the status of memory chips is also reflected in the performance expectations for Samsung Electronics and SK Hynix. Global investment bank Morgan Stanley predicts that Samsung Electronics and SK Hynix will achieve operating profits of 24.5 trillion won (approximately 1.17 trillion RMB) and 17.9 trillion won (approximately 855.9 billion RMB), respectively, this year. The operating profits of Samsung Electronics and SK Hynix last year were 43.6 trillion won (approximately 208.5 billion RMB) and 47.2 trillion won (approximately 225.7 billion RMB), respectively, with an expected increase of up to 4-5 times. Morgan Stanley said: "In 2026, both companies have entered an unprecedented phase of supply constraints, and the storage capacity for the whole year has already been sold out," "A structure with high capital efficiency and high profit has taken shape compared to previous periods." Professor Kim Jeong-ho of KAIST said: "Memory chips are gradually shifting toward customized products, and the influence of South Korean companies with excellent design and production capabilities has further expanded," "In the upcoming AI era, memory will dominate the industry."

Source: Chosun Ilbo

Original: toutiao.com/article/1856254638909504/

Statement: This article represents the views of the author himself.