Samsung Lands Groq 3 LPU Manufacturing Deal as NVIDIA Bets Big on Inference
Samsung Electronics will manufacture NVIDIA's new Groq 3 Language Processing Unit, the inference-focused chip that emerged from NVIDIA's USD 20 billion acquisition of Groq last December. Jensen Huang confirmed the partnership on stage at GTC 2026 in San Jose on 16 March, sending Samsung shares up as much as 5.3 per cent. The Groq 3 LPU uses on-chip SRAM rather than traditional high-bandwidth memory, enabling faster data transfer and better power efficiency for inference workloads. Samsung has already ramped wafer production from roughly 9,000 to 15,000 units on its 4-nanometre process, with commercial shipments expected in Q3 2026. The Korean chipmaker also unveiled its seventh-generation HBM4E memory at the same event, doubling down on its position in the AI silicon supply chain.
Why it matters for Asia
This is a significant win for Samsung's foundry division, which has struggled to compete with TSMC for leading-edge AI chip orders. Securing a marquee NVIDIA contract strengthens Korea's role as a critical node in the global AI hardware supply chain and gives Samsung a foothold in the fast-growing inference market, where demand from Asian hyperscalers and enterprise buyers is accelerating.^
