Nvidia CEO Jensen Huang has recently requested SK Hynix to accelerate the delivery of its next-generation high-bandwidth memory (HBM) chips by six months. The request was made during a meeting between Huang and SK Group Chairman Chey Tae-won, as reported by Reuters on Monday. SK Hynix had previously announced its plan to supply the chips to clients in the second half of 2025, which was already ahead of the initial target.
The demand for high-capacity and energy-efficient chips for Nvidia’s graphic processing units, primarily used in AI technology development, has been steadily increasing. Nvidia currently dominates over 80% of the global AI chip market. However, SK Hynix, a key player in meeting the surging demand for HBM chips, faces intensified competition from companies like Samsung Electronics and Micron Technology.
To stay ahead in the race, SK Hynix is planning to supply the latest 12-layer HBM3E to an undisclosed customer this year and intends to ship samples of the more advanced 18-layer HBM3E early next year. The company’s commencement of mass production of their latest high-bandwidth memory chips in September has positioned them favorably in the competitive market driven by artificial intelligence advancements.
The demand for AI technology has been a significant driver of growth for SK Hynix. In October, the company reported a record-breaking quarterly profit with a 7% revenue surge, largely attributed to the rising demand for AI technology. While Samsung has experienced soaring profits, delays in Nvidia’s certification for AI memory chips have allowed competitors like SK Hynix and Micron Technology to take the lead in high-bandwidth memory.
SK Hynix’s commitment to invest $6.8 billion in a new production facility in South Korea, as part of a larger plan to invest 120 trillion won in the construction of four fabs in the Yongin cluster, demonstrates their dedication to meeting the growing demand.