SK hynix aims to retain top spot in HBM market

Kwak No-jung, CEO of SK Hynix

SK hynix is determined to retain the top spot in the rapidly growing high-bandwidth memory (HBM) market.

Speaking at a press conference held at the chipmaker’s R&D center in Icheon on Thursday, CEO Kwak Noh-jung expressed confidence, saying that “the majority our HBM production from the company for 2024 as well as 2025 is already sold out.”

Kwak emphasized the increasing demand for HBM thanks to the growth of artificial intelligence (AI) services and projected a long-term average annual growth rate of 60 percent for the HBM market, driven by the expanding AI sector.

In a bid to dominate the market, SK hynix plans to continuously enhance its technological prowess and production capacity and will commence mass production of its 5th generation HBM (HBM3E) 12-stack products.

“Samples of the HBM3E 12-stack products will be provided this month, with mass production scheduled for the third quarter,” Kwak said.

SK hynix has also brought the production schedule for its 6th generation HBM (HBM4) chips forward. Originally planned for 2026, the HBM4 12-stack products will be manufactured a year ahead of schedule in 2025, followed by the production of HBM4 16-stack products in 2026. The company will apply its Advanced MR-MUF (Mass Reflow-Molded Underfill) technology to the HBM4 chips.

SK hynix’s confidence in its MR-MUF technology was evident during the event, with executives highlighting its benefits in protecting semiconductor chip circuits. The company has already applied MR-MUF to mass-produce HBM3 12-stack products.

“There are some who say that MR-MUF is limited at high stacking, but this is not the case,” Choi Woo-jin, vice president and head of package and test division at SK hynix, said. “On the contrary, MR-MUF enables us to stack more chips by applying heat instantly while maintaining performance.”

[Graphics by Song Ji-yoon]

SK hynix is already mass-producing HBM3 12-stage products using MR-MUF.

In addition to technological advancements, SK hynix aims to significantly expand its production capacity. Construction is underway for facilities such as the Cheongju M15X, the Yongin Semiconductor Cluster, and a packaging factory in Indiana, the United States, to meet the increasing demand for HBM.

“The M15X facility, initially designated for NAND production, will now pivot towards DRAM production to swiftly fulfill market demands,” Kim Young-sik, vice president of manufacturing technology at SK hynix, said.

“The M15X is being built in a double-story structure, including extreme ultraviolet (EUV) equipment. We will open the clean room in November 2025 and begin mass production in the third quarter of 2026.”

Regarding the Yongin semiconductor cluster, he said the company aims to open the clean room in May 2027, and its mini-fab will support technology development as well as evaluating domestic material, component, and equipment companies.

SK hynix also plans to strengthen its global network through collaborations. Kim Joo-sun, president of SK hynix, who oversees the new artificial intelligence (AI) infrastructure, highlighted the collaboration with TSMC to produce base dies using the logic process.

Kwak outlined the company’s strategy to address concerns regarding oversupply in the market by focusing on tailored demand post the 6th generation HBM (HBM4) and anticipates a shift towards a more order-based business model after the HBM4. SK hynix now forecasts its HBM revenue to reach between $140 billion and $160 billion from 2016 to 2024.