In a move that underscores the surging demand for artificial intelligence (AI) technology, Nvidia CEO Jensen Huang has requested SK Hynix to expedite the delivery of its next-generation high-bandwidth memory (HBM) chips by six months. This request, made during a meeting between Huang and SK Group Chairman Chey Tae-won, highlights the fierce competition in the AI chip market as companies strive to meet the rapidly escalating demand.
SK Hynix, a leading player in the global race to meet the surging demand for HBM chips, had previously announced its plan to provide these chips to clients in the second half of 2025. This timeline was already ahead of the initial target. However, Nvidia, which holds over 80% of the global AI chip market, clearly sees the need to accelerate the timeline, reflecting the critical role these high-capacity, energy-efficient memory chips play in AI technology development.
The demand for HBM chips, used in Nvidia’s powerful graphic processing units (GPUs), has been on the rise. SK Hynix, however, is not alone in this race. It faces intense competition from companies like Samsung Electronics and Micron Technology. The company is also 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.
This aggressive push by Nvidia is driven by the remarkable growth of AI technology. SK Hynix itself reported a record-breaking quarterly profit in October, with a 7% revenue surge, largely attributed to the rising demand for AI technology. Despite Samsung’s soaring profits, its delays in Nvidia’s certification for AI memory chips have allowed competitors like SK Hynix and Micron Technology to gain a foothold in the high-bandwidth memory market.
SK Hynix’s commencement of mass production of their latest high-bandwidth memory chips in September positioned the company ahead in the competitive race to meet the growing demand driven by artificial intelligence advancements. To further solidify its position, SK Hynix plans to invest $6.8 billion in a new production facility in South Korea. This is part of a larger commitment to invest 120 trillion won in the construction of four fabs in the Yongin cluster. The company’s strategic investments reflect its commitment to staying ahead of the curve in the ever-evolving world of AI technology.
