SK Hynix's 'Pricy" HBM4 Process is Mainly Due to the Use of TSMC's 4nm & Being the First to Supply It

It seems like the HBM segment is gearing up for the next phase of the AI hype, and it is claimed that HBM4 will play a vital role in the development of next-gen AI computing hardware. Since HBM4 has integrated logic and semiconductors into one package, it is claimed by Korean media that SK hynix is expected to raise HBM4 pricing by up to 70%, relative to HBM3E, citing higher costs, and more importantly, benefiting from the exclusive relations it has with NVIDIA's supply chain.

Since SK hynix was one of the first firms to offer HBM4 supply to NVIDIA, it ultimately gave the Korean giant an edge over the likes of Samsung and Micron. Moreover, the company has been solely supplying 12-Hi HBM3E stacks to NVIDIA for Blackwell Ultra, which means that SK hynix has a massive edge here, which has given them the leverage in price negotiations for HBM4. However, the higher prices are also driven by the complexity in manufacturing the HBM technology, particularly the use of TSMC's 4nm process as the base die.

However, higher prices do mean that Samsung and Micron can become more competitive with their solutions, and it seems like SK hynix would need to do a lot more to maintain its dominant HBM market share. Notably, Samsung has seen massive progress with 1c DRAM technology recently, and given that the firm has its semiconductor line, they could very well enter NVIDIA's supply chain with HBM4, posing a huge threat to SK hynix. It does seem evident that the race for HBM4 dominance would be a lot more competitive this time.

By: DocMemory
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