Samsung Turns to Rival TSMC for Nvidia’s Next-Generation Memory—Micron, SK Hynix Face Same Request: Report

Samsung Electronics Co. Ltd. (OTC:SSNLF) will reportedly use Taiwan Semiconductor Manufacturing Co. Ltd.’s (NYSE:TSM) process to make the base die for Nvidia Corp.’s (NASDAQ:NVDA) custom high-bandwidth memory. Nvidia Pushes Suppliers Toward TSMC In August, Nvidia unveiled NVHBM, a custom design that integrates the memory controller into the base die and can deliver up to 30% more memory bandwidth and 15% lower power consumption than standard HBM4E. The AI bellwether has asked Samsung, SK Hynix Inc. (NASDAQ:SKHY), and Micron Technology Inc. (NASDAQ:MU), the three suppliers tapped to produce NVHBM, to manufacture the base die, the logic layer at the bottom of the HBM stack, on TSMC’s 3-nanometer process, industry sources told the Seoul Economic Daily. It also wants the core die to be standardized on the 6th-generation 1c DRAM process. Samsung’s Device Solutions division accepted the request after an internal review, the report added. Samsung, SK Hynix, Micron and Nvidia did not immediately respond to Benzinga’s request for comment. TSMC declined to comment on the report, saying it does not comment on individual customers. In a 2024 statement on memory collaboration, the company said it has worked with partners including Micron, Samsung Memory, and SK Hynix on high-bandwidth memory solutions aiming to “tackle the rapidly growing demand in AI.” Read Also: Stock Market: Will S&P 500 Open Up or Down Today? TSMC Could Benefit Regardless Samsung worked with TSMC four years ago on packaging compatibility, but this is the first time the two have partnered at the HBM manufacturing stage, the report said. Samsung will maintain its turnkey model for standard HBM and custom HBM supplied to other customers. Chief Market Strategist at Futurum Equities Shay Boloor sees the setup giving Nvidia “more flexibility to shift orders between suppliers as HBM prices rise,” while TSMC stands to benefit “regardless of which memory maker wins the business.” $NVDA is reportedly requiring Samsung, $MU and $SKHY to build the base die for its next-generation custom HBM on $TSM 3nm process. That gives Nvidia more flexibility to shift orders between suppliers as HBM prices rise while putting TSMC in a position to benefit regardless of… pic.twitter.com/9JKnIxsb93— Shay Boloor (@StockSavvyShay) October 18, 2026 Shortages and China Cloud the Outlook JPMorgan’s analysis shows HBM shortages of 20% in 2026, 19% in 2027, and 16% in 2028, with the cumulative shortage reaching 23 weeks by 2028. Memory chip makers are also facing intensified competition with China, as memory maker ChangXin Memory Technologies reported progress on a denser DRAM design and plans server-memory products using it by the end of 2026. Price Action: NYSE-listed shares of TSMC closed 2.28% lower on Friday at $412.6 and fell 0.04% in after-hours trading. In Taiwan, the stock was trading flat at TWD 2,420 ($74.53) on Monday. Benzinga Edge rankings indicate TSMC’s NYSE-listed stock has a Momentum score in the 86th percentile and a Growth score in the 85th percentile. See More: Top Momentum Stocks Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Kittyfly / Shutterstock