Samsung Electronics and Advanced Micro Devices (AMD) announced that they have signed a memorandum of understanding to enhance their strategic partnership regarding memory chip supplies for artificial intelligence infrastructure.

The contract will center on providing Samsung's next-gen high-bandwidth memory (HBM4) for AMD's forthcoming Instinct MI455X AI accelerators, along with optimized DDR5 memory for AMD's sixth-gen EPYC processors, according to reports.

The firms will also explore chances for a foundry collaboration, in which Samsung could offer contract chip production services for future AMD products.

According to the agreement, Samsung will establish itself as a principal HBM4 provider for AMD's upcoming AI GPUs. The South Korean company has served as a main HBM supplier for AMD, providing HBM3E chips utilized in AMD's MI350X and MI355X accelerators.

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The arrangement occurs in the week of Nvidia's yearly developer conference, GTC, where CEO Jensen Huang announced a foundry partnership with the Korean company and commended its HBM4 chips.

The partnership underscores a larger competition among international chip manufacturers to secure long-term supply agreements for advanced memory, as AI-driven needs transform the semiconductor sector and constrict the availability of HBM chips.

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Last month, AMD announced it had reached an agreement to sell AI chips valued at up to $60 billion to Meta Platforms over a five-year period, a transaction that enables the Facebook parent company to buy up to 10percent of the chips. AMD made a comparable agreement with OpenAI last year.

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Samsung, the leading memory chip manufacturer globally, has been aiming to close the gap with competitors in the rapidly expanding HBM sector. According to Counterpoint, it possesses approximately a 22percent share of the worldwide HBM market, in contrast to the 57percent held by market leader SK Hynix.