NVIDIA (NVDA, Financial) co-founder and CEO Jensen Huang expressed confidence in Samsung Electronics' ability to overcome challenges in manufacturing a new type of memory chip crucial for AI systems. This high-bandwidth memory (HBM) is a vital component of AI systems using NVIDIA chips. However, Samsung has lagged behind competitors like SK Hynix in producing HBM that meets NVIDIA's standards. Huang acknowledged these difficulties at a press conference during the International Consumer Electronics Show (CES) in Las Vegas.
Huang stated that Samsung is working diligently to develop a new design that meets NVIDIA's requirements. As the world's largest memory chip manufacturer, Samsung is facing pressure in the profitable AI market, where it has trailed competitors. These challenges have impacted Samsung's latest quarterly earnings, released on Wednesday, which fell short of analysts' expectations. The demand for AI computing systems powered by NVIDIA has surged over the past two years, with NVIDIA chips being central to these systems, processing vast data inputs to create AI models. Memory chips play a critical role by supplying information to processors.
Samsung is striving to overcome these hurdles by enhancing memory speed and capacity and integrating components closely with processors, adding new complexities to chip production. Huang expressed his confidence, stating, "Without a doubt, they will succeed. I am confident Samsung will achieve success with HBM."
