Nvidia Set to Benefit as SK Hynix Targets Double-Digit DRAM Sales from AI Chips in 2024
South Korean memory chipmaker SK Hynix expects high-bandwidth memory (HBM) chips catering to AI chipsets to constitute a double-digit percentage of its DRAM chip sales in 2024, per CEO Kwak Noh-Jung.
In March, the Nvidia Corp (NASDAQ:NVDA) supplier began commercializing the next-generation advanced HBM chips.
Nvidia is likely the beneficiary of SK Hynix’s initial shipments, Reuters reports.
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HBM chips cater to the graphic processing units (GPUs) produced by Nvidia and others that process vast amounts of data in generative AI.
SK Hynix has led the HBM chip market by being the sole supplier of the version currently used, the HBM3, to Nvidia, which accounts for 80% of the market for AI chips.
Analysts expect HBM chips to account for 15% of industry-wide DRAM sales in 2024, up from 8% in 2023.
Recent reports indicated SK Hynix’s plan to commit $4 billion towards creating an advanced chip-packaging facility in West Lafayette, Indiana, backed by the U.S. Chips Act, potentially adding between 800 – 1,000 jobs.
The event occurs amid intensifying geopolitical tensions between the U.S. and China. In 2023, the U.S. tightened its semiconductor embargo on China by extending restrictions on the import of AI technology chips from the likes of Nvidia.
China retaliated by phasing out U.S. microprocessors from Intel Corp (NASDAQ:INTC) and Advanced Micro Devices, Inc (NASDAQ:AMD) in government computers and servers as Huawei Technologies Co gained favor on nationalist grounds.
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