Samsung to use TSMC technology for Nvidia next-generation memory chips

Samsung Electronics is turning to rival foundry TSMC to manufacture crucial components for Nvidia's next-generation artificial intelligence memory chips. According to a report by the Seoul Economic Daily, the South Korean tech giant will use TSMC's 3-nanometre process to produce the base dies for Nvidia's custom high-bandwidth memory (NVHBM).

The move marks the first time Samsung has teamed up with the Taiwanese contract chipmaker at the HBM manufacturing stage. Nvidia asked its memory suppliers—Samsung, SK Hynix, and Micron Technology—to adopt TSMC's 3-nanometre process for NVHBM base dies and use sixth-generation DRAM technology for the core dies.

Nvidia unveiled the NVHBM architecture in August, integrating its proprietary memory controller into the base die to standardise performance across multiple memory suppliers. Samsung accepted Nvidia's requirements following an internal review, though it plans to retain its in-house production model for standard HBM products and other customers.

Rival foundries forced into alignment

The alliance demonstrates how relentless demand for AI hardware is reshaping standard competition in the semiconductor sector. While Samsung operates its own foundry business, industry sources cited by the Seoul Economic Daily noted that Samsung is assessing whether its own manufacturing facilities could produce NVHBM base dies if demand exceeds TSMC's capacity.

The arrangement comes as TSMC struggles to keep pace with demand from major chip designers. TSMC reported a 69 per cent jump in third-quarter net profit to 763.1 billion Taiwan dollars (approximately $23.5 billion), adding that orders for AI chips continue to exceed its total production limits.

Three decades of Nvidia and TSMC

The collaboration comes amid fresh details on the 30-year relationship between Nvidia and TSMC. Speaking on a podcast with Lex Fridman, Nvidia chief executive Jensen Huang revealed that when Nvidia was a struggling startup in the late 1990s, he initially tried reaching TSMC's US office through the Yellow Pages without success.

Huang later wrote directly to TSMC founder Morris Chang. Chang phoned him back, invited him to Taiwan, and promised TSMC would "jump through hoops" for Nvidia. According to Huang, the two companies have completed tens of billions of dollars in business over three decades without ever signing a formal contract. Chang even offered Huang the chief executive role at TSMC in 2013, which Huang turned down.