SK Hynix Inc. stated that it has begun mass manufacturing of next-generation high-bandwidth memory (HBM) chips used in artificial intelligence chipsets, with initial shipments expected to Nvidia this month.
SK Hynix Inc. (000660.KS) announced on Tuesday that it has launched mass production of next-generation high-bandwidth memory (HBM) chips used in artificial intelligence chipsets, with reports indicating that initial shipments will be made to Nvidia (NVDA.O) this month.
The new type of chip, known as the HBM3E, is the focus of heated rivalry. Last month, Micron Technology (MU.O.) said that mass manufacturing of the chips had begun, while Samsung Electronics (005930.KS) announced the development of the industry’s first 12-stack HBM3E processors.
SK Hynix has led the HBM chip industry by being the exclusive provider of the latest generation, the HBM3, to Nvidia, which controls 80% of the AI chip market.
“The company expects successful mass production of HBM3E, and with our experience as the industry’s first provider of HBM3, we expect to cement our leadership in the AI memory space,” the company said in a statement.
The world’s second-largest memory chipmaker’s new HBM3E chip improves heat dissipation by 10% while processing up to 1.18 terabytes of data per second.
Analysts say SK Hynix’s HBM capacity is fully booked for 2024, as the growing demand for AI chipsets drives up demand for the high-end memory chips used in them.
“SK Hynix has secured an absolute market position… and its volume increase in high-end memory chips is also expected to be the most aggressive among chipmakers,” Kim Un-ho, analyst at IBK Investment & Securities, stated.
Nvidia (NVDA.O) opened a new tab on Monday to announce its latest flagship AI processor, the B200, which is believed to be 30 times faster at some tasks than its predecessor, as it strives to preserve its leading position in the artificial intelligence sector. SK Hynix shares have doubled in value over the last year as a result of the company’s leadership position in HBM chips.
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