NVIDIA-TSMC collaboration could sideline Samsung, SK Hynix in memory chips
What's the story
NVIDIA is looking to strengthen its position in the memory chip market by working with Taiwan Semiconductor Manufacturing Company (TSMC). This move could potentially affect South Korean giants Samsung Electronics and SK Hynix, who currently supply high-bandwidth memory (HBM) for NVIDIA's AI chips. Industry experts have warned that this collaboration may reduce the role of these companies in the supply chain.
Manufacturing shift
TSMC may start producing 3D DRAM at NVIDIA's request
According to The Information, TSMC is considering producing 3D DRAM at NVIDIA's request.
The technology stacks memory cells vertically to fit more capacity into the same space.
This could mean that Samsung and SK Hynix may supply memory cells while their partners control the finished chips.
However, TSMC has said it remains focused on contract chip manufacturing.
Partnership dynamics
SK Hynix already relies on TSMC for HBM4 chips
SK Hynix already depends on TSMC to manufacture base dies for its HBM4 chips. A base die connects the memory layers above it to the processor.
NVIDIA's custom NVHBM design integrates the memory controller into that base die.
Reportedly, NVIDIA has asked Samsung, SK Hynix, and Micron to use TSMC's 3nm process for their NVHBM chips' base dies.
Supply challenges
NVIDIA aims to reduce reliance on suppliers
The demand for HBM has been unable to keep up with AI needs, resulting in price hikes.
NVIDIA's processors can process data faster than memory can deliver it, creating a gap known as the 'memory wall.'
By designing its own memory structures, NVIDIA could improve performance and reduce reliance on any single supplier.
Production possibilities
TSMC could expand its role in memory production
Professor Kwon Seok-joon has suggested that TSMC could expand its role in memory production without building a DRAM plant.
It could produce more base dies or lead-chip stacking via hybrid bonding, which directly joins chips without tiny solder bumps.
TSMC could also collaborate with Taiwanese memory makers or create circuits running 3D DRAM.
Market strategy
Korean companies should become co-designers of base die: Kwon
Kwon has advised Korean companies to become co-designers of the base die and secure mass production capability in hybrid bonding before TSMC does.
He also suggested diversifying custom HBM customers to Google, AMD, and Meta, among others, while protecting their design sovereignty outside NVIDIA.
This could be a way for these companies to stay competitive in the evolving memory chip market.