Samsung Wants HBM4 Prices to Match SK Hynix in Nvidia Deal

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Last month, Samsung launched HBM4, its 6th-generation high-bandwidth memory chip. The company is now in discussion with Nvidia to finalize pricing and supply plans for the cutting-edge HBM chip for next year. The firm aims to charge the same price as its arch-rival and industry leader, SK Hynix.

Samsung reportedly begins HBM4 price talks with Nvidia

According to a report from DealSite, Nvidia began discussions with Samsung only a week after signing its HBM4 supply contract with SK Hynix. This suggests that the GPU maker wants to secure as much HBM4 supply as possible for its upcoming AI accelerators. Both companies are now in the final stages of setting the unit price for the 12-layer HBM4 product. A final decision is expected before the end of the year.

Samsung is aiming to sell its HBM4 at the same price range as SK Hynix, reportedly in the mid-$500 range per unit. “We offered a relatively low price to Nvidia for the previous HBM3E 12-layer, but we are negotiating with the goal of signing a contract with SK Hynix at the same unit price for HBM4,” said a Samsung official.

Samsung had to lower the price of its HBM3E chip because of certification delays. The chip reportedly sold at a mid-$200 price, while SK Hynix’s product was in the mid-$300 range. With increasing demand for HBM4, the company sees little reason to offer discounts to Nvidia.

Meanwhile, Samsung is ramping up the capacity of its 1c DRAM, the core foundation for HBM4. The company plans to gradually increase production to about 150,000 wafers per month by the end of next year. While the current yield for HBM4 is around 50%, it may reach the recommended level ahead of mass production. The firm may begin shipping HBM4 to Nvidia as early as the second quarter of next year.

Written by

Binay Konwar

Binay Konwar started his blogging journey in 2014 and has since written plenty of tech articles. At present, he is working as a News Writer at SammyGuru, covering everything about Samsung. He holds a Master's degree in Mathematics, but his real passion lies in tech and writing. In his free time, he enjoys playing chess and watching movies.

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