SK Hynix, the world’s second-largest producer of memory chips, announced on Tuesday the commencement of mass production for its latest HBM3E chips. The new chips, touted as the next-generation top-performing DRAM for artificial intelligence applications, are expected to boost SK Hynix’s dominant position in the High Bandwidth Memory market.
SK Hynix has announced plans to commence delivery of HBM3E, an extended version of HBM3, later this month, following the completion of the verification process.
The chip will be utilized alongside Nvidia’s graphics processing unit, which is scheduled for release in the second quarter. HBM3E is the fifth generation of DRAM memory, succeeding its predecessors HBM, HBM2, HBM2E, and HBM3. SK Hynix, which pioneered the mass production of HBM3, unveiled the successful development of HBM3E in August 2023.
The announcement comes approximately seven months after SK Hynix disclosed its progress in developing the fifth-generation HBM3E chips. Positioned as the premier provider of HBM3E products globally, SK Hynix aims to build upon the momentum generated by its previous success with HBM3 chips. Sk Hynix is a key supplier to Nvidia, a prominent player in the AI semiconductor industry.
Ryu Sung-soo, the head of SK Hynix’s HBM business, discussed the company’s position as a comprehensive provider of AI memory solutions. He also highlighted SK Hynix’s track record of success in the HBM sector and its longstanding customer partnerships as pivotal factors in achieving this goal.
HBM chips, renowned for their vertical interconnection of multiple DRAM chips, elevate data processing speed, rendering them essential components for AI systems like OpenAI’s ChatGPT.
SK Hynix’s latest HBM3E product is the premier choice in the AI memory sector, excelling in critical aspects such as processing speed and thermal management. With a data processing capacity of up to 1.18 terabytes per second, equivalent to handling over 230 full-HD movies sized at 5 gigabytes each in just a single second, the HBM3E chip sets a new standard for performance in the industry.
Having secured a dominant position in the global HBM market with an estimated share of 90%, SK Hynix solidified its leadership by becoming the first company to mass-produce HBM3E. This achievement, coupled with its exclusive supply deal with Nvidia, has propelled the company’s market share in advanced HBM products to over 80%, with a staggering 90% hold on the HBM3 market segment.
While Micron Technology recently announced the commencement of mass production for HBM3E chips destined for Nvidia’s H200 Tensor Core GPUs, sources within the industry suggest that SK Hynix achieved the milestone first, based on the Korean company’s progress in the preliminary manufacturing stages.
Samsung Electronics Co., SK Hynix’s main competitor and the world’s leading memory chip manufacturer, also made headlines last month with the unveiling of its HBM3E 12H, the industry’s inaugural 12-stack HBM3E DRAM having the highest capacity among HBM products.
According to recent reports, SK Hynix and Samsung Electronics Co. are aggressively expanding their HBM production capabilities, aiming to boost their output by the end of this year.
Samsung’s total HBM capacity is projected to nearly triple by 130,000 units per month, while SK Hynix aims to more than double its capacity to 120,000-125,000 units per month.
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