Key Points
- SK Hynix announced the mass production of its latest HBM3E chips, which caused its shares to rise by more than 9%.
- The new chips feature 12 layers and 50% greater capacity than the previous generation, boosting AI data processing capabilities.
- SK Hynix has been a key supplier to Nvidia and plans to supply the HBM3E chips to customers by the end of 2024.
- Samsung Electronics and Micron are also racing to supply HBM chips, intensifying competition in the AI chip market.
SK Hynix saw its shares soar more than 9% on Thursday after announcing the mass production of its latest high-bandwidth memory (HBM) chips, securing a lead in the highly competitive AI chip market. The South Korean company, the second-largest memory chipmaker globally, outperformed its main competitor, Samsung Electronics. Its shares also saw a 4% rise due to the positive outlook for AI demand, particularly following Micron’s strong performance report.
SK Hynix’s new product, the HBM3E, is a breakthrough in the AI chip industry. It features 12 layers and offers a 50% increase in capacity compared to previous 8-layer versions. This makes it the most advanced HBM chip currently on the market, helping meet the surging demand for AI technology, which requires high-performing memory solutions to process vast amounts of data efficiently.
The company has been a major supplier of HBM chips to Nvidia, the global leader in graphics processing units (GPUs) for AI applications. Although SK Hynix has not yet disclosed the specific customers for the new HBM3E chips, it plans to start shipments by the end of 2024, positioning itself to maintain its stronghold in this critical sector of the AI supply chain.
Competition in the AI chip market is intensifying, with major players racing to meet the demand for HBM chips, which are essential for training AI models. These chips enable faster data processing and are crucial for improving the performance of AI technologies. In July, Samsung Electronics announced it would supply its production-ready HBM3E 12-high chips to customers in the second half of 2023. Similarly, Micron revealed earlier this month that it was shipping its HBM3E 12-high chips to key industry partners for qualification.
The optimistic outlook for AI demand is also benefiting the broader South Korean market, with the KOSPI benchmark index rising 1.7% in response to the surge in tech stocks. This trend reflects increasing investor confidence in companies positioned to capitalize on the AI boom, with SK Hynix leading the charge.
