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SK Hynix's HBM chips will benefit from AI boom


Thursday, March 28, 2024

South Korea's SK Hynix (000660.KS), opens new tab, an Nvidia (NVDA.O), opens new tab supplier, expects high-bandwidth memory (HBM) chips used in AI chipsets to make up a double-digit percentage of its DRAM chip sales in 2024, CEO Kwak Noh-Jung said on Wednesday.

This month, the world's second-largest memory chipmaker began mass production of the next-generation advanced HBM chips with sources saying initial shipments would go to Nvidia.

HBM chips are advanced memory chips in high demand for use in the graphic processing units (GPUs) produced by Nvidia and others that process vast amounts of data in generative AI.

SK Hynix has led the HBM chip market by virtue of being the sole supplier of the version currently used - the HBM3 - to Nvidia, which has 80% of the market for AI chips.

Analysts have estimated HBM chips will climb to 15% of industry-wide DRAM sales this year, up from 8% in 2023.

By: DocMemory
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