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Investing.com-- Samsung Electronics Co Ltd (KS:005930) shares rose sharply in South Korean trade on Monday after reports said the company had cleared NVIDIA Corp’s (NASDAQ:NVDA) requirements to supply high-bandwidth memory chips to the artificial intelligence major.
Samsung shares rose as much as 5% to 83,400 won, helping drive a 0.8% rise in the KOSPI index.
South Korean media reported that Samsung was preparing to supply 12-layer HBM3E chips Nvidia after clearing the latter’s requirements for the memory chips. HBM chips are a memory component attached to graphical processing units, which are a key component of AI data centers.
Samsung already supplies HBM3E to AMD (NASDAQ:AMD) and Broadcom Inc (NASDAQ:AVGO), but had not met Nvidia’s requirements until recently.
Samsung’s rival, memory chip giant SK Hynix Inc (KS:000660), was the first in its sector to begin mass-producing HBM3E chips last year, followed by Micron Technology Inc (NASDAQ:MU).
The three are now competing to develop and supply next generation HBM4 chips.
SK Hynix said last week it had completed development of HBM4 chips, sending its shares to a record high. They traded sideways on Monday.