Samsung has certainly faced some challenges in the tech industry, but one decision, in particular, stands out—and it could be one of their most significant missteps. The company once turned down a proposal from NVIDIA’s CEO for a long-term collaboration, a move that may have cost them billions.
Currently, Samsung’s financial position isn’t as strong as it once was, with the semiconductor and high-bandwidth memory (HBM) sectors showing losses. They missed an opportunity to align with NVIDIA’s vision, which could have been pivotal for their business.
Years ago, NVIDIA foresaw the growing importance of HBM and approached major Korean suppliers known for their DRAM and NAND expertise. As the leading company, Samsung should have been the perfect partner. However, due to a pessimistic outlook on HBM, Samsung declined the offer. If they had understood the potential of what would become a multi-trillion-dollar enterprise, they might have reconsidered.
Meanwhile, SK Hynix seized the opportunity, partnering with NVIDIA for HBM development. This collaboration has been fruitful, propelling SK Hynix to the forefront of the memory product market. They are now the primary supplier for NVIDIA’s HBM3, HBM3E, and potentially HBM4, reporting substantial revenues thanks to this partnership.
Had Samsung accepted NVIDIA’s proposal, it might still be a leader in the chip and HBM markets, and could have prevented its competitors from taking the lead. The chip landscape, which is currently dominated by TSMC, might have been more balanced with Samsung’s involvement.
This scenario is reminiscent of another costly misjudgment when SoftBank’s CEO, Masayoshi Son, sold a large stake in NVIDIA before the AI boom, missing out on enormous stock value gains. Predicting NVIDIA’s trajectory—and the rapid evolution under its CEO—isn’t straightforward for everyone. The company continues to surprise and innovate, particularly in the AI sector.
