According to a Reuters’ report, SK Hynix Inc. has announced today the commencement of mass production of the next-generation high-bandwidth memory (HBM) chips used in artificial intelligence chipsets.
TakeAway Points:
- SK Hynix begins mass production of the next-generation memory chip.
- The report highlighted that the new HBM3E chip processes up to 1.18 terabytes of data per second and offers a 10% improvement in heat dissipation
- The first shipment of the new chip goes to Nvidia this month, according to the report.
The Next-Generation Memory Chip
The new chip, HBM3E, according to the report, is a novel kind of chip, centre of fierce competition. Samsung Electronics claimed to have created the first 12-stack HBM3E chips in the industry last month, while Micron Technology announced that it had begun mass producing the chips. Sources have stated that the first shipments will go to Nvidia this month.
Nvidia, which controls 80% of the market for AI chips, only receives its supply of the HBM3 chip, SK Hynix has become the market leader in the HBM chip space, according to the report.
“The company expects successful mass production of HBM3E and with our experience as the industry’s first provider of HBM3, we expect to cement our leadership in the AI memory space,” SK Hynix said in a statement.
The report highlighted that the new HBM3E chip processes up to 1.18 terabytes of data per second and offers a 10% improvement in heat dissipation.
Analysts noted that, due to the rapid demand for AI chipsets and the premium memory chips that go into them, SK Hynix’s HBM capacity is completely reserved for 2024.
“SK Hynix has secured an absolute market position, and its volume increase in high-end memory chips is also expected to be the most aggressive among chipmakers,” said Kim Un-ho, analyst at IBK Investment & Securities.
SK Hynix’s Stock Value Increases
Due to its dominant position in HBM chips, SK Hynix’s stock value has doubled over the last 12 months.
However, Nvidia announced its newest flagship processor on Monday, the B200, which is reportedly 30 times faster than its predecessor at particular tasks. It seeks to maintain its dominant position in the artificial-intelligence industry.
