Samsung Electronics Reveals ‘Mach-1’ Secret Weapon to Challenge Nvidia’s Market Dominance

Samsung Electronics announces new business at AGM

Mach-1 dramatically reduces congestion

NVIDIA dominates the AI ​​semiconductor market challenge

Intel Foundry shows confidence

“Return to the world's #1 semiconductor company in 3 years”

Samsung Electronics Vice President Han Jong-hee delivers a speech at the 55th Annual Shareholders' Meeting of Samsung Electronics held at the Suwon Convention Center in Suwon, Gyeonggi-do on the 20th. 2024.3.20 (Yonhap News)

Samsung Electronics' disclosure of the development of the artificial intelligence (AI) accelerator “Mach-1” at the Samsung Electronics shareholders' meeting is being interpreted as an attempt to publicize its will to restore its pride in the AI ​​market.

In particular, NVIDIA's challenge to the artificial intelligence accelerator market, dominated by next-generation technology, is interpreted as an attempt to compensate for its failure in the high-bandwidth memory (HBM) market and start a new push. AI market seriously.

Samsung Electronics' Device Solutions (DS) Division Head (President) Kyeong-Hyeon Kye announced plans to introduce Samsung Electronics' artificial intelligence accelerator early next year at the 55th Annual General Meeting of Shareholders held at the Suwon Convention Center in Gyeonggi-do. 20th. Prior to this, President Kyung also announced the establishment of an “Artificial General Intelligence (AGI) Development Laboratory” on his social network (SNS).

The Mach-1 AI accelerator, developed by Samsung Electronics, is designed with an unusual structure that can reduce the barrier between the graphics processing unit (GPU) and the memory semiconductor by one-eighth. Additionally, low power (LP) memory can be used without the high bandwidth memory (HBM) used in existing AI semiconductors.

President Kyung explained. “Using different algorithms, we've reduced bottlenecks between memory semiconductors and GPUs by about an eighth,” he added. “We're going to enable large-scale language model (LLM) inference even when using LP memory. rather than HBM”.

Samsung Electronics has completed verification of a programmable chip (FPGA) for Mach-1 and is currently in the process of designing a system-on-chip (SoC). The goal is to introduce an AI system consisting of Samsung Electronics chips early next year.

Mach-1 is a product that fills several gaps in existing AI accelerators, and if developed as planned, there are speculations that it could play a “game changer” role in the AI ​​accelerator market. This means it will challenge the AI ​​accelerator market, which is currently dominated by Nvidia.

President Kyung also announced other new business plans for the future. He said. “The advanced package business will generate more than $100 million in sales this year with 2.5D products,” and added, “Ultra light-emitting diodes for next-generation power semiconductors such as silicon carbide (SiC) and gallium nitride (GaN) and augmented reality (AR) glasses”.

CEO Kyung's comments came during a “shareholder dialogue” session, which Samsung Electronics has tried for the first time at a general meeting of shareholders. On this day, 13 executives of Samsung Electronics communicated with shareholders for about an hour, answering questions about business issues.

In response to criticism that HBM is lagging behind in the market, Chairman Keun said: “We are better prepared to prevent something like this from happening again in the future,” he added. (PIM) will be developed in consultation with various customers to make practical progress. “We are in the process of applying it, and soon we will see visible results,” he said.

President Kyung said the DS division also went into surplus this year. He explained. “From a business perspective, I think that since January of this year, we've gone out of deficit and back into surplus. It's hard to tell you the amount here, but overall we'll be able to see how the company is doing. somewhat follow this year.”

When asked if Intel's announcement is a threat to Samsung Electronics' 1.4nm (nanometer) process, Foundry Business Unit Head Choi Si-Young (President) said, Compared to Intel and Samsung Electronics, we have a foundry track record in developing and supplying not only Central Processing Units (CPU), but also Mobile APs, System-on-Chip (SoC), Graphics Processing Units (GPU). ), and automotive products,” he said, expressing confidence.

Regarding the restoration of the smelter's operational level, Chairman Choi added: “Operation rates are improving from last year and will likely recover to significant numbers in the second half of the year.”

On this day, Samsung Electronics also announced its intention to regain the world's No. 1 position in the semiconductor industry within two to three years. President Kyun emphasized. “2024 marks the 50th anniversary of Samsung's semiconductor business, and it will be a year of growth that heralds a full recovery, a leap forward, and the start of the next half-century for DS.”

On this day at the general meeting of shareholders, agenda items such as the appointment of external directors by Shin Jae Yoon, former chairman of the Financial Services Commission, and Cho Hye Kyung, a professor of Hansung University's AI Application Department, as well as the approval of financial statements, director remuneration. approval of the limit, and partial amendments to the charter were presented and adopted.

Samsung Electronics Vice President and CEO Jong Hee Han said: “We will further strengthen the organization and promotion system that can identify various new products, new businesses and new business models at an early stage.” He added: By continuing to strengthen the competitiveness of existing businesses, we will continue to strengthen the key word of the future: artificial intelligence (AI). ,” he said.

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