Nvidia's Urgent Call Spurs SK Hynix to Fast-Track Next-Gen Memory Chips

Recent revelations from SK Group's Chairman Chey Tae-won at the group's AI summit in Seoul have highlighted a pressing demand from Nvidia for faster delivery of next-generation high-bandwidth memory chip, HBM4. Nvidia's CEO Jensen Huang has urged SK Hynix to expedite their supply by six months, reflecting the overwhelming demand for Nvidia's upcoming GPUs.

SK Hynix initially planned to release HBM4 chips in the latter half of 2025. However, the accelerated timeline underlines the strong market demand anticipated for Nvidia's new GPUs. With Nvidia holding more than 80% market share in AI chip sales, the relentless demand for their products is driving the company to seek swifter supply solutions.

Chey Tae-won’s comments point toward SK Hynix's significant adjustments to accommodate Nvidia's aggressive timeline. As high-bandwidth memory chips are pivotal for enhancing AI computing performance, SK Hynix is committed to developing more advanced solutions to cater to Nvidia and other clients.

In early 2025, SK Hynix plans to launch a 16-layer HBM3E chip, illustrating their strategic push toward next-gen chip technology. Despite starting mass production of a 12-layer HBM3E variant in September, SK Hynix is continuously planning to introduce even more advanced chips like HBM5 between 2028 and 2030.

This collaboration between Nvidia and SK Hynix underscores the necessity of deep integration within the supply chain. Nvidia's request not only reflects its supply chain optimization but also indicates significant trust in SK Hynix's technical capabilities. Such partnerships might hasten the pace of HBM4 development and adoption, altering perceptions around high-performance computing.

SK Hynix is transitioning from its existing HBM3 to the efficient HBM3E, aiming to dominate the supply market. In the third quarter of this year, HBM products accounted for 30% of SK Hynix’s total DRAM sales, with expectations to reach 40% in the fourth quarter. This shift not only demonstrates increased demand for high-performance memory chips but also signifies SK Hynix's continuous innovation on new technological avenues.

Overall, the semiconductor industry is witnessing intensified collaboration and competition among major players. Nvidia’s request for expedited delivery from SK Hynix mirrors the global surge in demand for GPUs and high-performance chips. For these industry giants, constantly pushing technological boundaries and fostering deeper partnerships is vital to maintaining their competitive edge amid rapid technological advancements.