South Korean chipmaker SK hynix is set to revolutionize the AI memory market with the introduction of 12-layer high bandwidth memory (HBM) chips. The company plans to begin mass production of these chips in the third quarter, solidifying its position as a leader in the AI memory market.
CEO Kwak Noh-jung announced the company’s plans, stating, “On the HBM technology side, the company is planning to provide samples of 12-high HBM3E with the industry’s best performance in May, and start mass production in the third quarter.” The popularity of SK hynix’s HBM products has been increasing, especially as the demand for AI computing grows. HBM chips play a crucial role in AI applications such as generative AI, which has seen exponential growth.
SK hynix is considered a frontrunner in the HBM market and is a key supplier to US AI chip leader Nvidia. In March, the company successfully mass-produced eight-layer HBM3E, marking an industry first. Kwak believes that the demand for ultra-fast, high-capacity, and low-power memory products for AI applications will continue to increase, expanding into various devices such as smartphones, PCs, and automobiles.
According to SK hynix, sales of AI memory, including HBM and high-capacity DRAM modules, are projected to dominate 61% of the global memory chip market by 2028, a significant increase from just 5% in 2023. The company is confident in its ability to compete in the global HBM market, despite competition from Samsung Electronics and Micron Technology.
To meet the demand for AI memory, SK hynix has made strategic investments. It will spend 5.3 trillion won ($3.85 billion) on building a new DRAM production base named M15X in South Korea, which is expected to begin commercial operation in the third quarter of 2026. Additionally, the company plans to invest nearly $4 billion in an advanced packaging fabrication and R&D facility in the United States for the mass production of AI memory products, including next-generation HBM chips, in the second half of 2028.
SK hynix’s innovative approach to AI memory production is set to shape the future of AI technology. With their advanced HBM chips and plans for expansion, they are well-positioned to meet the increasing demand for high-performance, efficient memory in AI applications. As the AI industry continues to evolve, SK hynix remains at the forefront, driving progress and pushing boundaries.
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