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Nvidia's Huang asked SK Hynix to speedup supply of HBM4 chips

by VARINDIA 2024-11-04

The push reflects Nvidia's anticipation of sustained AI market expansion and the importance of a robust memory supply chain.

Nvidia CEO Jensen Huang has urged SK Hynix to accelerate production of its HBM4 chips to meet the surging demand for advanced AI and machine learning applications. As Nvidia’s GPUs are widely used for AI and data-intensive workloads, HBM4 chips, known for their speed and efficiency, are critical for optimizing the performance of these processors. By ramping up HBM4 supply, SK Hynix could support Nvidia in addressing the rising market needs and help Nvidia maintain its competitive edge in AI hardware.

SK Hynix said in October that it aimed to supply the chips to customers in the second half of 2025. With Nvidia’s request, this timeline may see significant adjustments, highlighting the competitive nature of the AI and semiconductor industries. Faster HBM4 deployment could position Nvidia to maintain its leadership in GPU technology, enhancing performance for AI, data centers, and other high-demand computing applications.

Huang's request for faster delivery highlights demand for higher capacity, energy-efficient chips used in Nvidia's graphic processing units to develop AI technology. Nvidia commands more than 80% of the global AI chip market. While SK Hynix has been leading a global race to meet an explosive demand for HBM chips that aid in the processing of vast amounts of data to train AI technology and are crucial for Nvidia's chipsets, it is facing increasing competition from rivals like Samsung Electronics and Micron.

Meeting Nvidia's needs promptly would likely help SK Hynix strengthen its position in the AI hardware market. During the SK AI SUMMIT 2024 in Seoul, Kwak Noh-Jung, CEO, said, "The company plans to supply the latest 12-layer HBM3E to an unidentified customer this year, also plans to ship samples of more advanced 18-layer HBM3E early next year."