Samsung Electronics Co SSNLF has introduced a new memory chip that is set to revolutionize the AI industry.
What Happened: Samsung has unveiled a new high-bandwidth memory chip, the HBM3E 12H, which the company claims has the “highest capacity to date” in the industry, reported CNBC. This new chip is expected to significantly enhance the performance and capacity of AI systems.
Yongcheol Bae, the executive vice president of memory product planning at Samsung Electronics, stated, “The industry’s AI service providers are increasingly requiring HBM with higher capacity, and our new HBM3E 12H product has been designed to answer that need.”
Bae added, “This new memory solution forms part of our drive toward developing core technologies for high-stack HBM and providing technological leadership for the high-capacity HBM market in the AI era.”
The HBM3E 12H chip is a significant addition to Samsung’s portfolio, considering its position as the world’s largest producer of dynamic random-access memory chips, which are utilized in consumer devices such as smartphones and computers.
"As AI applications grow exponentially, the HBM3E 12H is expected to be an optimal solution for future systems that require more memory. Its higher performance and capacity will especially allow customers to manage their resources more flexibly and reduce total cost of ownership for datacenters," said Samsung Electronics.
"I assume the news will be positive for Samsung's share price," SK Kim, executive director of Daiwa Securities said, according to the report.
Why It Matters: The AI industry is experiencing a surge in demand for high-performance memory chips, driven by the increasing use of generative AI models like OpenAI‘s ChatGPT. This trend has been a boon for chipmakers, with companies like Nvidia witnessing a significant rise in revenue.
Earlier in the month, Samsung announced a collaboration with Arm Holdings to develop the next-generation Arm Cortex-X CPU using Samsung Foundry's latest Gate-All-Around (GAA) process technology. This partnership aims to introduce significant innovations in the semiconductor industry, including an AI chipset solution targeting the generative AI mobile computing market.
However, Samsung’s strategic moves in the chipmaking industry have not been limited to partnerships and product launches. The company recently divested its entire remaining stake in ASML Holding during the December quarter, marking a strategic move to diversify and expand its footprint in the chipmaking industry.
Furthermore, Samsung’s investment in a new advanced chip packaging research facility in Japan is another step in the company’s efforts to boost its chipmaking capabilities amid the global tech race. These strategic moves, combined with the latest chip launch, underscore Samsung’s commitment to maintaining its position as a key player in the semiconductor industry.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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