SK hynix Inc. said it completed development of HBM4 memory chips and prepared them for mass production, marking what the South Korean company claims is an industry first as competition intensifies in the lucrative artificial intelligence memory market.
The announcement sent shares soaring more than 7% Friday to their highest level since 2000, extending year-to-date gains to nearly 90%. The chipmaker, which supplies memory to Nvidia Corp., said the new chips deliver double the bandwidth and 40% better power efficiency compared to the previous generation.
The HBM4 chips exceed industry standard operating speeds by 25%, reaching over 10 gigabits per second versus the 8 Gbps benchmark set by standards body JEDEC. SK hynix claims the technology could boost AI service performance by up to 69%.
The timing appears strategically calculated as rivals Samsung Electronics Co. and Micron Technology Inc. race to bring their own HBM4 products to market. SK hynix currently dominates the HBM market with approximately 50-70% share, while Samsung has struggled with yield issues and Nvidia qualification challenges.
However, questions remain about actual production volumes and customer commitments. While SK hynix shipped samples earlier this year, the company provided no timeline for large-scale manufacturing or disclosed which customers have placed orders. Industry analysts note that 2025 HBM capacity is already largely allocated, suggesting limited near-term revenue impact despite the technological milestone.
The broader HBM market is expected to nearly double to $35 billion in 2025, driven by insatiable demand for AI processing power.
