SK Hynix achieves a crucial milestone in next-generation HBM4 chips

SK Hynix has completed the development of HBM4, its next-generation memory product for ultra-high-performance AI. The South Korean company has also established a mass production system for these high-bandwidth memory chips for its customers.

According to the company, this semiconductor chip vertically interconnects multiple DRAM chips and increases data processing speed compared to conventional DRAM products. SK Hynix is confident that the mass production of HBM4 chips will lead the artificial intelligence industry.

SK Hynix prepares for mass production of HBM4

The company developed its product based on the recent dramatic increase in the demand for AI and data processing, which requires high bandwidth memory for greater system speed. It also considers that ensuring the energy efficiency of memory has become a key requirement for customers, as energy consumption for the operation of data centers has increased significantly.

The semiconductor supplier expects that the increased bandwidth and energy efficiency of HBM4 will be the optimal solution to meet customer needs. The production of this new generation involves stacking chips vertically to save space and reduce energy consumption, which helps process large volumes of data generated by complex AI applications.

"The completion of HBM4 development will be a new milestone for the industry. By delivering the product that meets customer needs in performance, energy efficiency, and reliability in a timely manner, the company will meet market deadlines and maintain a competitive position."

–Joohwan Cho, Head of Development of HBM at SK Hynix.

The South Korean company revealed that its new product has the best data processing speed and energy efficiency in the industry. According to the report, the chip's bandwidth has doubled compared to the previous generation by adopting 2,048 I/O terminals, and its energy efficiency has increased by more than 40%.

SK Hynix also claimed that HBM4 will improve AI service performance by up to 69% when the product is applied. The initiative aims to address data bottlenecks and reduce energy costs for data centers.

The company revealed that HBM4 exceeds the standard operating speed of JEDEC (8Gbps) by incorporating more than 10Gbps into the product. JEDEC is the global standards organization that develops open standards and publications for the microelectronics industry.

SK Hynix also incorporated the Advanced MR-MUF (Mass Reflow Molded Underfill) process in HBM4, which allows stacking the chips and injecting liquid protective materials between them to protect the circuit and harden them.

The company stated that this process has proven to be reliable and more efficient in the market for heat dissipation compared to the method of placing film-type materials for each chip stack.

SK Hynix shares soar

Following the launch of HBM4, SK Hynix's stock price hit an all-time high on Friday, rising by up to 6.60% to 327,500 KRW ($235,59). The company's stock price has also increased by approximately 17.5% over the past five days and nearly 22% in the last month.

The senior analyst at Meritz Securities, Kim Sunwoo, predicted that the company's HBM market share will remain in the low 60% range in 2026. He argued that this will be supported by the early supply of HBM4 to key customers and the resulting advantage of being the first mover.

SK Hynix supplies the largest amount of HBM semiconductor chips to Nvidia, followed by Samsung Electronics and Micron, which supply smaller volumes. The head of HBM business planning at the company, Choi Joon-yong, projected that the memory chip market for AI will grow by 30% annually until 2030.

Joon-yong stated that the demand for AI from end users is very strong. He also sees that the billions of dollars in capital spending for AI by cloud computing companies will be revised upward in the future.

Disclaimer: For informational purposes only. Past performance is not indicative of future results.