SK hynix advances next-generation memory, fuels chip tech race

SK hynix Inc.’s the 5th generation DRAM product, HBM3E. [Courtesy of SK hynix]

SK hynix Inc. has reignited the competition in the semiconductor technology race with its latest next-generation high-bandwidth memory (HBM). The Korean chipmaker’s vision is to revamp its business with a focus on high-value-added products amid the industry recession.

According to the company on Monday, SK hynix has successfully developed the 5th generation DRAM product, HBM3E, tailored for high-performance artificial intelligence (AI) applications. Samples of the new product have been provided to its client, Nvidia Corp., for performance verification, and mass production is scheduled in the first half of next year.

HBM is a high-value and high-performance chip that enhances data processing speed by vertically connecting multiple DRAMs compared to conventional DRAMs. The rise of ChatGPT and the increasing global demand for AI servers have resulted in a surge in the demand for the HBM used in those generative AI programs.

According to market research firm Mordor Intelligence, the global HBM market is projected to grow to $6.32 billion in 2028 from $2.04 billion in 2021. As a result, memory chip makers such as Samsung Electronics Co. and SK hynix are fiercely competing to seize a technological advantage.

In 2022, SK hynix developed HBM3, the 4th generation HBM, marking a global first. According to TrendForce, SK hynix currently holds the top position in the global HBM market, accounting for a 50 percent market share.

As of the second quarter this year, the growth of HBM is so robust that it accounts for more than 20 percent of SK hynix’s total DRAM sales. SK hynix announced plans to double its production capacity next year by prioritizing HBM in its investments.

SK hynix’s latest memory chips can process more than 1.15 terabytes (TB) of data per second, equivalent to processing over 230 full-HD movies’ worth of data in just one second.

The new chips also exhibit a 10 percent improvement in thermal performance compared to the previous generation chips. To achieve this, a process called “MR-MUF” has been introduced, which involves the injection and solidification of liquid-form protection material between chips to shield the circuitry.

Samsung Electronics, another major chipmaker, is also intensifying its technological competition. The company plans to release its own 5th generation HBM product, Snowbolt (HBM3P), in the latter half of this year, and produce the 6th generation HBM next year.

Samsung is confident in its ability to lead the HBM market. Earlier this month, Kyung Kye-hyun, the Device Solutions business leader, stated during an employee event that the company still holds a market share of over 50 percent in the HBM market, alleviating any doubts about the company’s competence in next-generation chipmaking.

Although chipmakers are strategically putting more emphasis on high-value chips like HBM in response to the industry downturn, the overall semiconductor industry‘s equipment investment is expected to decrease this year due to price declines resulting from oversupply and China’s economic slowdown.

According to a Nikkei report on Monday, the equipment investment plans of ten global chipmakers are projected to decrease by 16 percent from the previous year to $122 billion. The media’s analysis was based on data from companies including Samsung Electronics, SK Hynix, Intel Corp., and Taiwan Semiconductor Manufacturing Co.