Samsung in Talks with Nvidia to Supply Next-Generation HBM4 AI Chips

Samsung Electronics said on Friday it is working closely with Nvidia on potential supply deals for its next-generation HBM4 chips, which are set to launch next year. The announcement comes as Samsung seeks to strengthen its position in the booming AI hardware sector, where rival SK Hynix currently leads as Nvidia’s main supplier.

Nvidia said it is collaborating with Samsung on both HBM3E and HBM4 chips, underscoring its strategy to diversify suppliers amid surging demand for AI processors. In a separate initiative, Samsung will buy 50,000 Nvidia chips to develop an AI-powered semiconductor plant aimed at improving production speed and efficiency.

Samsung shares rose more than 4 percent after the news. Analysts say if the company secures HBM4 supply contracts with Nvidia, it could significantly boost its market share and close the gap with SK Hynix.

The partnership also highlights the long-standing relationship between Samsung Chairman Jay Y. Lee and Nvidia CEO Jensen Huang, who met in Seoul this week during the APEC CEO Summit.