Tech Giants Samsung and AMD Strengthen AI Chip Partnership

Samsung Electronics and Advanced Micro Devices have formalized an expanded partnership to supply advanced memory chips for artificial intelligence systems. The deal focuses on next-generation high-bandwidth memory technology and could include manufacturing services.

Two major technology companies announced Wednesday they are deepening their collaboration to meet growing demand for artificial intelligence computing power.

Samsung Electronics and Advanced Micro Devices revealed they have signed a formal agreement to broaden their existing partnership in memory chip technology specifically designed for AI applications, according to a joint company statement released from Seoul.

The partnership centers on Samsung providing its cutting-edge HBM4 high-bandwidth memory chips for AMD’s forthcoming Instinct MI455X AI accelerators, along with enhanced DDR5 memory components for AMD’s sixth-generation EPYC processors.

Additionally, both companies indicated they will explore potential manufacturing arrangements where Samsung could produce future AMD chip designs through contract services.

This collaboration builds on Samsung’s existing role as a major memory supplier to AMD, having previously delivered HBM3E technology for AMD’s MI350X and MI355X accelerator products.

The announcement coincided with Nvidia’s major developer conference this week, where Nvidia’s CEO Jensen Huang revealed his company’s own manufacturing partnership with Samsung and highlighted the Korean firm’s HBM4 capabilities during Monday’s presentation.

Industry analysts view this partnership as part of an intensifying competition among semiconductor manufacturers to secure long-term supply agreements for advanced memory technology, driven by artificial intelligence applications that are transforming chip demand and creating shortages in specialized HBM components.

AMD has been aggressively pursuing major AI chip contracts, including a massive agreement announced last month to potentially sell up to $60 billion in AI processors to Meta Platforms over five years, allowing the social media giant to purchase up to 10% of AMD’s chip production. The company struck a comparable arrangement with OpenAI in the previous year.

Samsung currently ranks as the world’s largest memory chip manufacturer but trails competitors in the rapidly expanding HBM market segment. Market research firm Counterpoint reports Samsung holds approximately 22% of global HBM sales, while industry leader SK Hynix commands 57% market share.