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SK Hynix CEO expects HBM chips to make up a double-digit share of DRAM sales by 2024.

ByYasmeeta Oon

Apr 2, 2024
The CEO of SK Hynix anticipates that HBM chips will constitute a double-digit percentage of DRAM chip sales in 2024.

SEOUL – South Korea’s SK Hynix (000660.KS), a major player in the semiconductor industry and a key supplier for Nvidia (NVDA.O), anticipates a substantial increase in the sales of high-bandwidth memory (HBM) chips utilized in AI chipsets for the year 2024, according to CEO Kwak Noh-Jung.

In a statement made on Wednesday, CEO Kwak Noh-Jung disclosed that SK Hynix is poised to witness a surge in demand for high-bandwidth memory (HBM) chips, which are integral components in advanced AI chipsets. The company forecasts that HBM chips will constitute a double-digit percentage of its DRAM chip sales this year, reflecting the growing reliance on AI technology across various sectors.

As the global demand for AI-powered applications continues to escalate, SK Hynix has strategically positioned itself to capitalize on this trend by focusing on the production of high-performance HBM chips. The company’s move to expand its production capabilities underscores its commitment to meeting the burgeoning demand for advanced semiconductor solutions.

HBM Chip Sales Projection
YearHBM Chip Sales (%)

Key Points:

  • SK Hynix expects HBM chips to constitute a double-digit percentage of its DRAM chip sales in 2024.
  • The company has initiated mass production of next-generation HBM chips, with initial shipments earmarked for Nvidia.
  • HBM chips are essential components in GPUs utilized for generative AI applications.
  • Analysts project HBM chips to account for 15% of industry-wide DRAM sales in 2024, up from 8% in the previous year.

Earlier this month, SK Hynix commenced mass production of next-generation HBM chips, underscoring its commitment to innovation and technological advancement in the semiconductor industry. The company’s latest HBM chips are designed to offer superior performance and efficiency, catering to the evolving needs of AI chip manufacturers like Nvidia.

With Nvidia currently dominating 80% of the market for AI chips, SK Hynix’s position as the sole supplier of the HBM3 version underscores its pivotal role in supporting the rapid expansion of AI technology. By supplying essential components to industry leaders like Nvidia, SK Hynix is poised to play a significant role in shaping the future of AI-driven innovation.

Analysts have lauded SK Hynix’s efforts to capture a larger share of the HBM chip market, citing the company’s strategic partnerships and focus on research and development as key drivers of growth. With the demand for AI-powered applications across sectors such as gaming, automotive, and healthcare on the rise, SK Hynix is well-positioned to capitalize on this trend and solidify its position as a leading semiconductor manufacturer.

The projected increase in HBM chip sales is expected to contribute significantly to SK Hynix’s overall revenue growth in 2024, further enhancing its competitive edge in the global semiconductor market. As the adoption of AI technology continues to accelerate, SK Hynix remains committed to delivering cutting-edge semiconductor solutions that power the next wave of innovation and drive sustainable growth.

In conclusion, SK Hynix’s optimistic outlook for the sales of high-bandwidth memory chips underscores the growing significance of AI technology in today’s digital landscape. With the demand for advanced semiconductor solutions on the rise, the company’s focus on innovation and strategic partnerships positions it for continued success in the dynamic and rapidly evolving semiconductor industry.

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Featured Image courtesy of Mobile World Live

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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