SK Hynix Strengthens Ties with Nvidia, Boosting HBM4 Dominance – BusinessKorea
In a significant move that underscores the rapid advancements in the semiconductor industry, SK Hynix and Taiwanese foundry company TSMC signed a memorandum of understanding (MOU) last April to collaborate on the development of High Bandwidth Memory (HBM4). This partnership aims to meet the increasing demands from Nvidia, a leading player in the AI accelerator market.
As of June 19, SK Hynix's stock price has been hitting new highs daily, with its market capitalization surpassing 175 trillion won. This surge in value is attributed to the company's strategic acceleration of its next-generation HBM production timeline, which is expected to strengthen its relationship with Nvidia and enhance its market dominance.
According to industry sources, SK Hynix is expediting its HBM roadmap, including HBM4 and HBM4E. Originally planned for mass production in 2026 and 2027, respectively, the company has now moved up these timelines by one year each. HBM4 is set for mass production next year, while HBM4E will follow in 2026. This adjustment aligns with Nvidia's accelerated AI accelerator release cycle, which has shortened from two years to one year.
"SK Hynix is speeding up the implementation of its next-generation HBM roadmap, including HBM4 and HBM4E," an industry insider revealed. "The company has moved up its plans to mass-produce HBM4 in 2024 and HBM4E in 2026 by one year each."
The new HBM4 technology promises a 40% increase in bandwidth and a reduction in power consumption to 70% compared to its predecessor, HBM3E. Additionally, HBM4's density will be 1.3 times higher. This leap in performance and efficiency is crucial as Nvidia continues to set new records, surpassing Amazon and Apple to become the highest market cap company during trading hours. Consequently, SK Hynix, as a key supplier, is also seeing its value rise.
"The two companies signed a memorandum of understanding (MOU) related to HBM4 development last April, demonstrating their commitment to jointly respond to Nvidia's requests," the insider added. This collaboration is deepening as the manufacturing process for HBM4 includes some logic processes, necessitating close cooperation between SK Hynix and TSMC.
The semiconductor industry is witnessing a dynamic shift, with SK Hynix's proactive measures positioning it as a formidable player in the market. The company's accelerated production timeline not only aligns with Nvidia's needs but also sets a new benchmark for technological advancements in high-performance computing.
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