SK Hynix will ramp up production of specialized memory chips for artificial intelligence processors by 70% this year, betting heavily on sustained demand from key customers like Nvidia Corp. and Broadcom Inc.
The South Korean memory maker plans to increase monthly production of DRAM wafers for high-bandwidth memory to 170,000 units by year-end, up from 100,000 in 2023. This target exceeds the company’s initial goal of 140,000 units.
Market researcher TrendForce projects SK Hynix’s total monthly DRAM wafer production will hit 500,000 units in the fourth quarter, with HBM chips accounting for 34% of output. The expansion focuses on 5th generation chips made with 10-nanometer technology for use in HBM3E modules.
While SK Hynix currently dominates the premium HBM market, particularly as the primary supplier for Nvidia’s top-tier AI chips, the aggressive expansion carries risks. Industry sources note that securing adequate manufacturing space could pose challenges.
The company’s move comes as competitors struggle with production yields. Micron Technology’s HBM3E yield rates at its Taiwan facility remain below 10%, according to industry insiders, pushing more customers toward SK Hynix for stable supply of the advanced memory chips essential for AI computing.
