Sources claim Nvidia is 'fomenting' competition between Samsung and SK Hynix to lower HBM prices

News from this site on May 5, local time on Friday, according to Korean media Business Korea citing analysts, NVIDIA is stimulating competition between Samsung Electronics and SK Hynix , the two companies The company is currently in the "head" position in the HBM (this site's note: high-bandwidth memory) market.

While Samsung Electronics announced that it will strengthen its "technology leadership" position, there are signs that competition in the HBM market is intensifying. The above-mentioned analysts believe that Nvidia’s purpose is to lower the price of HBM supplied to itself by intensifying competition between the two companies.

The report quoted Wall Street and industry sources as saying that Nvidia’s stock price was trending downward on the New York Stock Exchange, and the recent performance and forecasts of AMD and other peers have failed to meet market expectations.

All of the above have triggered concerns in the industry about NVIDIA's financial report data, The sharp rise in HBM prices has become one of the reasons. Reports show that the price of the third generation of HBM, HBM3 DRAM, has increased more than five times since 2023, further exacerbating the impact on development costs.

Reports claim that recent messaging surrounding Nvidia’s presence in the HBM market has been “vague”, fueling speculation that competition is being deliberately stoked. NVIDIA is reported to have "intentionally leaked" relevant information to incite competition among existing suppliers and potential suppliers in order to drive down HBM prices. Prior to this, Nvidia Huang Renxun and SK Group Chairman Cui Taiyuan met in Silicon Valley on March 25, which was regarded as "seemingly related to the above strategy."

When the "price war" begins, a technical competition will follow. In the long run, it will have a positive impact, because both Samsung and SK Hynix fundamentally hope to improve their technical capabilities, make HBM faster and more reasonably priced, and enhance the overall market competitiveness.

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