SK Hynix's High-Bandwidth Memory Chips for AI Sold Out Through 2025

SK Hynix, the world's second-largest memory chipmaker, has announced that its high-bandwidth memory (HBM) chips used in AI chipsets are sold out for 2024 and nearly sold out for 2025. The company will begin sending samples of its latest 12-layer HBM3E chip in May 2024 and start mass production in the third quarter of 2024.

SK Hynix's CEO Kwak Noh-Jung stated that the HBM market is expected to continue growing as data and AI model sizes increase, with an annual demand growth of around 60% in the mid- to long-term. "The company's HBM products this year have already sold out, and 2025 HBM volumes are nearly exhausted due to the rapid expansion of AI technology into a wider range of on-device applications, such as smartphones, PCs, and automobiles," Kwak said.

The new HBM3E chip offers a 10% improvement in heat dissipation and can handle up to 1.18 terabytes of data per second. SK Hynix's leading position in HBM chips has contributed to a doubling in the value of its shares over the past 12 months.

Why this matters: The high demand for SK Hynix's advanced memory solutions in the AI market indicates the rapid growth and importance of AI technology across various industries. As AI continues to expand into more applications, the need for powerful memory chips like HBM will only increase, positioning SK Hynix as a key player in the evolving AI landscape.

SK Hynix has also announced plans to invest $3.87 billion to build an advanced chip packaging plant in Indiana, U.S., with an HBM chip line, and $3.9 billion to build a new DRAM chip factory in South Korea with a focus on HBMs. By 2028, chips made for AI, such as HBM and high-capacity DRAM modules, are expected to constitute 61% of all memory volume in terms of value, up from around 5% in 2023.

Key Takeaways

• SK Hynix's HBM chips for AI are sold out for 2024 and nearly sold out for 2025.
• SK Hynix will start sampling its 12-layer HBM3E chip in May 2024 and mass production in Q3 2024.
• The HBM market is expected to grow 60% annually due to increasing AI model sizes.
• SK Hynix plans to invest $3.87B in an Indiana chip packaging plant and $3.9B in a new DRAM factory.
• AI-focused chips like HBM and high-capacity DRAM are expected to make up 61% of memory volume by 2028.