Samsung to increase GDDR7 supply to Nvidia, daily reports

Samsung to increase GDDR7 supply to Nvidia, daily reports

NVIDIA has requested Samsung to significantly expand its GDDR7 production to support its new B40 AI GPU, according to recent reports. This shift from high-bandwidth memory (HBM) to cost-effective GDDR7 memory is aimed at meeting the growing demand for AI GPUs, particularly in the Chinese market.

Samsung has completed facility expansions and is now ready to commence mass production, as per industry sources. The increased production capacity is expected to enter operation this month, aligning with NVIDIA's need to supply the B40 AI GPUs in large volumes [1].

The demand for GDDR7 memory is driven by NVIDIA's new B40 AI GPU, which reduces data processing capabilities to avoid US government restrictions on AI chip exports to China. This strategic move allows NVIDIA to continue supplying AI GPUs to the Chinese market [2].

The increased production of GDDR7 memory by Samsung also marks a significant win for the Korean firm, which has previously struggled to gain a foothold in NVIDIA's high-end AI GPU supply chain. The expansion of GDDR7 production is part of NVIDIA's broader strategy to secure future China-specific AI GPU sales [2].

In addition to the GDDR7 production increase, NVIDIA's stock has faced recent challenges due to competition from rivals like Broadcom and Google. Citi has recently cut its price target for NVIDIA from $220 to $210, citing growing competition in the AI chip market. Despite this, analysts remain optimistic about NVIDIA's long-term prospects, particularly in the neocloud and sovereign AI project sectors [3].

References:
[1] https://www.tweaktown.com/news/107618/nvidia-requests-samsung-to-double-its-gddr7-production-well-double-the-order-so-be-ready/index.html
[2] https://wccftech.com/nvidia-orders-144-million-of-memory-chips-from-samsung-for-china-specific-blackwell-b40-ai-gpu-report/
[3] https://cryptorank.io/news/feed/533e5-nvidia-price-target-cut-to-210-by-citi