AMD has reportedly entered into an agreement with Samsung to use cutting-edge HBM3 memory and related packaging technology for its MI300X GPUs. There are several reasons why AMD chose Samsung, and most of these reasons seem to be related to TSMC and Nvidia. Because it is known that TSMC is heavily occupied by Nvidia’s huge AI GPU orders, and it seems that there is no other option for AMD than Samsung.Samsung and AMD partnership
It is stated that Samsung has passed the decisive quality tests for the next generation HBM3 memory and has risen to an attractive position for AMD. That’s why Samsung is showing great interest in MI300X GPUs and the company is expected to capture a 50 percent share of the HBM market next year. Samsung HBM3 memory and packaging technology will be used by MI300X GPUs and other Instinct MI300 accelerators, which looks set to lead AMD’s AI growth next year.
Alongside AMD, Nvidia also sees Samsung as a potential supplier, as TSMC is currently unable to meet the enormous demand from the AI industry. It is said that Nvidia is facing large order accumulations that extend delivery times up to six months, which is actually confirmed by the statements made by the company. So we can see that the company is pursuing a “dual source” strategy. However, involving Samsung could damage the Nvidia-TSMC relationship, a risk the green team cannot take.
On the other hand, we think that AMD’s new generation “MI400” Instinct GPUs will be supplied by Samsung for now. AMD is also gearing up to offer a cropped “MI300” variant for the Chinese market. This could significantly increase the company’s sales, as well as benefit Samsung. What really matters is how Samsung will manage this situation, as this could be a turning point for Samsung’s foundry and memory division.
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