Currently, the South Korean company SK hynix is the only supplier of HBM3 and HBM3E memory for the needs of NVIDIA, which equips them with computing accelerators that are in great demand in the server segment of the market. Samsung’s attempts to break into this supply chain have not yet been completely successful, although progress in this direction is still expected. In any case, as noted DigiTimes with reference to South Korean media, SK hynix is fully loaded with orders for the production of HBM3 and HBM3E chips for the entire next year, although demand significantly exceeds its production capabilities.
Image source: SK hynix
This manufacturer estimates that in 2023, up to 10% of all server systems put into operation will be focused on working with artificial intelligence. In the future, their number will increase annually by an average of more than 40%. SK hynix itself expects to increase supplies of HBM memory for the needs of this segment by 60-80% annually over the next five years.
Seeing the potential to increase profit margins by switching to the production of profitable products such as DDR5 and HBM, SK hynix intends to reduce production volumes of less profitable DDR4 memory as early as this half of the year. The production of NAND memory in the current quarter will be reduced by 10%, as this segment continues to experience an overstocking of finished products.
2023-10-30 10:49:00
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