Samsung is in contention to supply advanced high bandwidth memory (HBM) chips to Tesla. The Elon Musk-led American automaker plans to make its own artificial intelligence (AI) processors and has requested HBM4 samples from Samsung and SK Hynix. It is expected to select one of these South Korean semiconductor biggies as a long-term partner after testing their samples.
Samsung and SK Hynix compete to supply HBM4 chips to Tesla
HBM chips are vital for AI processors, which have experienced a surge in demand in recent years. As companies build AI data centers, training hubs, and supporting infrastructure, the need for high-speed memory like HBM has grown exponentially to enable the efficient handling of complex AI tasks. Samsung is one of the very few global manufacturers of HBM chips.
According to The Korea Economic Daily, Samsung and SK Hynix are developing sixth-gen HBM4 chip prototypes for Tesla. The EV giant has requested HBM4 chips for general use. It will evaluate the samples from both companies before finalizing a larger production deal with one of them. Both firms have already made customized HBM4 chips for Google, Meta, and Microsoft.
All of these American tech biggies are working on their own AI processors to reduce the reliance on Nvidia, the world’s largest producer of AI chips. Tesla also aims to expand beyond EVs, clean energy, and AI-powered self-driving cars into the broader AI space. It already operates a custom-built supercomputer called Dojo to train its Full Self-Driving (FSD) systems.
As the report notes, Dojo is “expected to be the cornerstone of Tesla’s AI ambitions beyond self-driving”. The firm is likely to use HBM4 chips in Dojo and other AI data centers. It could also upgrade its next-gen self-driving cars from HBM2E to HBM4 chips. It remains to be seen whether Samsung manages to outclass its compatriot and arch-rival SK Hynix to supply these chips to Tesla.
