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Samsung bags a crucial order from NVIDIA for AI chips

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Last updated: April 8th, 2024 at 11:26 UTC+02:00

Samsung's looking to increase its revenues and profits from the semiconductor division after a couple of years of downturn caused by the supply glut in the memory market. It's vital that the company win significant orders that help it achieve this objective.

Samsung has been focusing on its AI chip solutions to get orders from companies that are at the forefront of AI right now. NVIDIA is certainly one of those companies, and it has reportedly given an order to Samsung for AI chips.

Samsung provides packaging technology for NVIDIA's AI chips

The order is specifically for Samsung's 2.5D I-Cube packaging technology and the interposer. Samsung unveiled this technology back in 2021. The 2.5D heterogeneous packaging technology allows for multiple logic dies, CPU, GPU, NPU and several high-bandwidth memory dies, to be stacked horizontally on top of a silicon interposer.

This enables the multiple dies to act as a single chip. The company had said at that time that this technology would be used in high-performance chips for 5G, AI, and large data centers as it allows for much faster communication between the memory and logic units of the chip.

Local media reports indicate that Samsung will be providing this packaging technology to NVIDIA for its AI chips. The package it'll provide NVIDIA will reportedly have four high-bandwidth memory modules as well. NVIDIA has already waxed lyrical about the superiority of Samsung's HBM chips, so this isn't surprising in the least.

Samsung has been working hard since last year to get more customers of its 2.5D packaging service. The fact that it ended up bagging orders from NVIDIA works well in its favor, as other companies that see the leading AI chipmaker today put its trust in Samsung will likely consider opting for its packaging service as well.

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