Nvidia CEO Jensen Huang praised Samsung Electronics as an excellent chip manufacturer but avoided giving a clear answer about the company’s role in supplying cutting-edge high-bandwidth memory chips, raising concerns over Samsung’s prospects in securing a major AI client.
During a press conference held on the sidelines of the Nvidia GTC 2025 developers conference in San Jose on Wednesday, Huang said he expects Samsung to play an "important role." However, when asked whether Samsung's latest HBM3E chips will be used in Nvidia's next-generation graphics architecture, Blackwell Ultra, Huang refrained from giving a direct answer.
Instead, he explained that Samsung has the capability to integrate the base die of HBM with application-specific integrated circuits and memory, a key skill required for manufacturing leading-edge AI chips.
Huang’s ambiguous response has fueled speculation over whether Samsung can secure Nvidia — one of the industry's largest buyers of high-value HBM chips — as a client.
Despite concerns, Samsung Electronics’ shares remained strong on Thursday, continuing their upward trend as the chair and top executives reaffirmed their commitment to boosting stock growth.
Industry sources revealed that Samsung Chair Lee Jae-yong recently urged employees to adopt a “do-or-die” mentality to reclaim the company's competitive edge, acknowledging the challenges in its key business sectors.
“What matters is not the crisis itself, but how we respond to it. We must invest in the future, even if it means sacrificing immediate profits,” Lee reportedly said in a prerecorded video message shown to around 2,000 Samsung executives, delivering a rare and direct statement.
Samsung’s top executives have also pledged to make a "painstaking effort" to drive a market rebound.
Jun Young-hyun, head of Samsung’s semiconductor business, confirmed that the company will begin mass production of its 12-layer HBM3E chips in the second quarter or the latter half of this year, while next-generation HBM4 chips are also set to enter mass production in the second half of 2025.
On Thursday, Samsung Electronics’ shares rose 2.91 percent to 60,200 won ($41), marking a second consecutive day of gains.
For Samsung to fully capitalize on its 12-layer HBM3E chips, it needs to secure a supply deal with Nvidia for Blackwell Ultra, which Huang announced will launch in the second half of this year.
At GTC 2025, Huang also unveiled Vera Rubin, Nvidia’s next graphics architecture, scheduled for release in late 2026.
Samsung is currently trailing behind its smaller rival, SK hynix, in the HBM race. SK hynix is already supplying 12-layer HBM3E chips to customers and showcased a prototype of its next-generation 12-layer HBM4 at GTC 2025.
Meanwhile, Huang downplayed concerns over the Trump administration’s tariffs, stating that they will not have a significant impact on Nvidia’s financial performance in the short term.
"We have a really agile network of suppliers; they are not just in Taiwan or Mexico or Vietnam," Huang said during the press conference. "If we add onshore manufacturing by the end of this year, we should be quite good."
US President Donald Trump has threatened to impose additional tariffs on imported computer chips, continuing his protectionist trade policies targeting major trading partners like Mexico, Canada, and China since taking office in January.
Huang also emphasized Nvidia's evolving business model, stating that the company no longer considers itself a chipmaker, but an infrastructure supplier.
"We're not making chips anymore; those were the good old days," Huang quipped. "What we do now is build AI infrastructure."
herim@heraldcorp.com
