Nvidia Supply Deal In Crosshairs, Samsung Set To Start HBM4 Chip Production Next Month As Korean Giant Takes On SK Hynix: Report

Samsung Electronics Co. (OTC:SSNLF) is reportedly preparing to begin production of its next-generation high-bandwidth memory chips as it seeks to supply Nvidia Corp (NASDAQ:NVDA) and narrow the gap with SK Hynix.

Samsung Pushes Into Next-Gen AI Memory

Samsung plans to start manufacturing HBM4 as early as next month and is expected to supply it to Nvidia, reported Reuters, citing a person familiar with the matter.

The move marks a key step in Samsung's efforts to regain momentum in the high-bandwidth memory market after production delays weighed on its earnings and share price last year.

HBM chips are essential components for advanced AI accelerators, an area where demand has surged alongside the rapid expansion of generative AI.

While the source declined to disclose shipment volumes or contract specifics, South Korea's Korea Economic Daily reported that Samsung has passed HBM4 qualification tests for both Nvidia and Advanced Micro Devices, Inc. (NASDAQ:AMD).

The company is preparing to begin shipments to Nvidia next month, the report said.

SK Hynix Defends Its Lead In HBM

Samsung's main rival, SK Hynix, currently dominates the HBM market and has been the primary supplier of advanced memory chips for Nvidia's AI processors.

The company said in October that it had completed supply negotiations with major customers for next year.

SK Hynix is also expanding production capacity.

An executive told the publication earlier this month that the company will begin deploying silicon wafers into its new M15X fabrication plant in Cheongju, South Korea, next month to produce HBM chips.

However, it remains unclear whether HBM4 will be included in the initial output.

Nvidia's Next-Gen AI Chips Raise Stakes

The timing is critical as Nvidia prepares to launch its next-generation AI platform, Vera Rubin, later this year.

Nvidia CEO Jensen Huang said earlier this month that the platform is already in full production and will be paired with HBM4 memory.

Samsung, SK Hynix Earnings In Focus As Memory Chip Price Hikes

Both Samsung and SK Hynix are scheduled to report fourth-quarter earnings on Thursday.

Samsung has raised prices on its major memory chips by as much as 60% since September 2025.

The company also acted swiftly this week after rumors circulated of an unprecedented 80% price increase across its entire memory product lineup.

Taiwan's United Daily News reported that Samsung and several memory module manufacturing partners have stated that the 80% figure is completely false.

Nvidia maintains a stronger price trend over the short, medium and long terms with a poor value ranking. Additional performance details, as per Benzinga’s Edge Stock Rankings.

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