TLDR
- Samsung will purchase 50,000 Nvidia GPUs to build an AI-powered chip manufacturing facility
- The factory will automate semiconductor production for mobile devices and robotics
- Samsung and Nvidia are working together to develop HBM4 memory chips for AI applications
- Samsung plans to begin marketing HBM4 chips in 2026
- Samsung stock increased more than 4% following the announcement
Samsung Electronics announced plans to build an AI-driven chip manufacturing facility powered by 50,000 Nvidia GPUs. The South Korean company will use the graphics processing units to create what it calls an “AI Megafactory.”
The new facility will focus on automating semiconductor production for mobile devices and robotics. Samsung aims to improve chip manufacturing yields and production speed through the AI-powered system.
Samsung has not disclosed when construction of the factory will begin. The company also has not announced the location of the planned facility.
Two Decades of Partnership
The agreement builds on a 20-year partnership between Samsung and Nvidia. Nvidia CEO Jensen Huang met with Samsung Chairman Jay Y. Lee in Seoul this week to discuss the collaboration.
Nvidia recently reached a $5 trillion market valuation. The company reported $500 billion in GPU orders across its Blackwell and Rubin chip architectures.
Nvidia executives stated that Samsung’s implementation of their GPUs will make lithography processes up to 20 times more efficient. Samsung will use Nvidia’s Omniverse simulation platform to improve production accuracy.
The AI factory will serve as both a production facility and research center. Samsung plans to use the GPUs to simulate design workflows and train internal AI models.
Memory Chip Development
Samsung confirmed it is in discussions to supply Nvidia with HBM4 chips. High-bandwidth memory chips are essential components for running large AI models.
Samsung plans to market HBM4 in 2026. Competitor SK Hynix will begin shipping HBM4 chips later this year.
Samsung currently sells HBM3E chips to major customers including Nvidia. The company describes its customer base as “all major customers” in the AI chip market.
Jeff Kim of KB Securities said successful HBM4 delivery to Nvidia could help Samsung gain market position. The analyst noted Samsung missed opportunities in earlier AI memory cycles.
The partnership reflects South Korea’s expanding role in AI infrastructure. Raymond Teh, Nvidia’s Asia-Pacific VP, said the company works with the Korean government on national AI programs.
Samsung stock rose more than 4% after the announcement. The company’s shares have climbed 60% since July 2025.
The post Samsung Stock: Partners with Nvidia to Develop AI-Driven Chip Factory appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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