Three Star Electronics Stock Surges 5% After Passing NVIDIA Certification

Three Star Electronics, a South Korean technology giant, has made a significant breakthrough in the global artificial intelligence chip race. The company's 12-layer HBM3E chip product has finally passed NVIDIA's certification test, marking a major milestone for the chip giant.

On Monday, Three Star's stock price surged by 5% to 83,400 Korean won, reaching a new high for the past year. This surge was driven by the significant progress made by Three Star's HBM chip. After multiple failed attempts, Three Star successfully passed NVIDIA's certification test for its fifth-generation 12-layer HBM3E product.

Three Star is now preparing to supply its 12-layer HBM3E storage chips to NVIDIA, with initial production and supply quantities expected to be limited. Previously, Three Star had supplied HBM3E products to AMD and Broadcom, but had not yet passed NVIDIA's certification test. NVIDIA requires suppliers to achieve a data transfer speed of over 10,000 bits per second, far exceeding the current industry standard of 8Gbps.

Three Star's competitor, SK Hynix, has already begun mass production and supply of HBM chips to NVIDIA, with Micron Technology following closely behind. Three Star is set to become the third supplier of HBM chips to NVIDIA. However, SK Hynix remains in the lead, having completed the development of its HBM4 chip and driven its stock price to a new high last week.

Analysts have noted that Three Star's chip progress could have a negative impact on the market pricing of HBM, especially if Three Star sells its products at discounted prices to gain market share.