Nvidia is keeping its South Korean chip suppliers close while seeking more control over memory. Samsung Electronics and SK hynix supply high-bandwidth memory (HBM) for Nvidia’s AI chips. Industry experts warn that Nvidia’s work with Taiwan’s TSMC could weaken their role. The Korean firms could end up supplying memory cells. Their partners could control the finished chips, according to the Korea Joongang Daily.
According to The Information, TSMC is planning to make 3D DRAM at Nvidia’s request. It is weighing whether to build a new one or convert an existing one. The technology stacks memory cells vertically to fit more capacity into the same space. TSMC said it remains focused on making chips under contract.
SK hynix already relies on TSMC to make base dies for its HBM4 chips. A base die connects the memory layers above it to the processor. Nvidia’s custom NVHBM design moves the memory controller into that base die. Nvidia reportedly asked Samsung, SK hynix and Micron to use TSMC’s 3 nanometre process. The request covered base dies for their NVHBM chips.
HBM supply has struggled to keep up with AI demand, and prices have risen. Nvidia’s processors can also handle data faster than memory can deliver it. The industry calls this gap the memory wall.
Designing its own memory structures could improve performance and reduce dependence on any one supplier. Greater control over memory production could also help TSMC cut delays in shipping Nvidia’s GPUs.
Professor Kwon Seok-joon said TSMC could expand its role in memory without building a DRAM plant. It could make more base dies or lead-chip stacking via hybrid bonding.
This method joins chips directly without tiny solder bumps. TSMC could also work with Taiwanese memory makers or produce circuits that run 3D DRAM.
“Going forward, Korean companies need to become co-designers of the base die. Securing mass production capability in hybrid bonding before TSMC does should be their last line of defence,” the publication quoted Kwon as saying.
“They need to diversify their custom HBM customers to Google, AMD, Meta and others and protect their design sovereignty outside Nvidia,” Kwon added.
Nvidia’s other partnerships in South Korea
Nvidia is also expanding its partnerships in South Korea. It signed an agreement with SK Telecom and startup Rebellions at Nvidia AI Day Seoul. SK Telecom plans to pair Rebellions’ processors with Nvidia’s GPUs in its new data centres.
Nvidia’s NVLink Fusion platform lets chips designed by other companies work inside Nvidia’s AI systems. The partnership gives Rebellions a chance to demonstrate its technology while widening Nvidia’s ecosystem. Nvidia has also invested in Point2 Technology, a Korean chip interconnect startup, according to the Korea Joongang Daily.