Madrid. – NVIDIA has taken a crucial step to maintain its position in the Chinese AI market by signing an agreement with Samsung to double the production of GDDR7 memory. According to the South Korean daily ET News, the contract, valued at approximately 144 million dollars, is intended to supply the new Blackwell B40 GPUs, designed specifically to comply with export restrictions imposed by the United States.
NVIDIA's strategy is a direct response to Washington's veto on the use of HBM memories in China. These memories, essential for high-end GPUs such as the H200 and the Blackwell Ultra, are subject to strict controls. Instead of these, the Blackwell B40 will use GDDR7, which, although it provides lower bandwidth, offers an optimal balance between cost and performance.
The Chinese market has historically been key to NVIDIA's revenues, predominantly in the data center and supercomputing sector. However, in its recent quarterly report, the company reported zero revenue from sales of H20 GPUs in China due to the lack of export licenses. Jensen Huang, CEO of NVIDIA, has been in talks with the U.S. administration to obtain the necessary approval for NVIDIA's new adapted products.
This agreement with Samsung also reflects an attempt at consolidation against competitors such as SK hynix, which dominates the HBM market. According to sources, Samsung is already supplying small batches of HBM3e for the Blackwell Ultra models, which could indicate a consolidation of its role as a dual supplier to NVIDIA.
The move is a careful maneuver on the current complex geopolitical chessboard, where the United States seeks to limit the advanced technology available to China. The Blackwell B40 is presented as an intermediate solution: capable of supporting artificial intelligence applications in the Chinese market without violating the strictest export regulations.
For China, obtaining access to these chips, although less advanced, remains a preferable option compared to relying exclusively on local manufacturers that have not yet reached NVIDIA's level of technology.
In short, NVIDIA's decision to rely on Samsung aims to secure its presence in China, guarantee a steady supply of GDDR7, and strengthen the strategic collaboration with Samsung. Washington's approval will be crucial for this plan to yield significant revenues for the company in which it is, without a doubt, one of its most important markets.
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