SK Hynix Initiates Mass Production of Next-Generation HBM3E Chips for AI Chipsets

SK Hynix Initiates Mass Production of Next-Generation HBM3E Chips for AI Chipsets

Key Points:

  • SK Hynix begins mass production of HBM3E chips for AI chipsets, and Nvidia is expected to receive the Initial Shipment.
  • The HBM3E chips offer a 10% enhancement in heat dissipation compared to previous versions and can process up to 1.18 terabytes of data per second.
  • SK Hynix leads the HBM chip market as the sole supplier of HBM3 to Nvidia, dominating 80% of the AI chip market.
  • Analysts project that the increasing demand for AI chipsets drives the strong demand for SK Hynix’s HBM chips, which has surged the company’s share value.

SK Hynix Inc. announced on Tuesday that it has commenced mass production of the next-generation high-bandwidth memory (HBM) chips, known as HBM3E, designed for artificial intelligence (AI) chipsets. According to sources, these chips will debut in Nvidia’s products this month.

The HBM3E chips represent a significant advancement in the industry and have become a focal point of intense competition. Last month, Micron Technology announced the initiation of mass production of HBM3 chips, while Samsung Electronics claimed the development of the industry’s first 12-stack HBM3E chips.

As the sole supplier of the current version, HBM3, to Nvidia, which commands an 80% share of the AI chip market, SK Hynix has established its leadership position in the HBM chip market. In a statement, SK Hynix expressed confidence in the successful mass production of HBM3E, leveraging its experience as the industry’s first provider of HBM3.

The new HBM3E chip offers significant improvements, including a 10% enhancement in heat dissipation and the ability to process up to 1.18 terabytes of data per second, demonstrating SK Hynix’s commitment to pushing the boundaries of memory chip technology.

Analysts note that SK Hynix’s HBM capacity is fully booked for 2024, driven by the soaring demand for AI chipsets. The explosive growth in demand for high-end memory chips underscores SK Hynix’s position as a market leader in this segment. Analyst Kim Un-ho from IBK Investment & Securities predicts that SK Hynix’s volume increase in high-end memory chips will be the most aggressive among chipmakers.

Meanwhile, Nvidia recently unveiled its latest flagship AI chip, the B200, boasting speeds 30 times faster than its predecessor. Nvidia’s continuous innovation aims to maintain its dominant position in the artificial intelligence industry, highlighting the importance of cutting-edge memory chips like HBM3E.

The market response to SK Hynix’s advancements has been substantial. The company’s shares have doubled in value over the past 12 months, reflecting investor confidence in its leading position in HBM chips.

TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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