SK Hynix Inc. secured a contract to supply high-bandwidth memory chips to Broadcom Inc., strengthening its position in the artificial intelligence semiconductor market dominated by Nvidia Corp.
The South Korean manufacturer plans to deliver the HBM chips in the second half of 2025 for Broadcom’s AI accelerators, which are being developed for major cloud service providers including Google, Meta, and ByteDance, according to people familiar with the matter.
To meet the increased demand, SK Hynix will expand its 1b DRAM production capacity to 170,000 300mm wafers next year, up from its initial target of 150,000. The company may delay the rollout of its next-generation 1c DRAM to prioritize current orders.
The deal marks Broadcom’s push to challenge Nvidia’s stronghold in AI chips using neural processing units, which could offer advantages in efficiency and cost compared to general-purpose GPUs. Broadcom is also reportedly collaborating with Apple Inc. and OpenAI on AI chip development.
SK Hynix previously indicated that HBM chips would comprise 40% of its DRAM revenue in the fourth quarter. The company declined to comment on specific customer relationships.
