SK Hynix, which is changing into the primary within the semiconductor business to start mass manufacturing of HBM4, the sixth era excessive bandwidth reminiscence (HBM), plans to launch an enormous provide offensive focusing on subsequent 12 months’s synthetic intelligence (AI) semiconductor market.
In keeping with business insiders, SK Hynix will full building of the primary clear room of the M15X fab in Might subsequent 12 months and start pilot operations. M15X is a significant manufacturing base the place SK Hynix has invested over 20 trillion gained. This facility is scheduled to supply HBM3E, which is at the moment the principle product, and HBM4, which shall be mass-produced starting early subsequent 12 months. It is usually identified that manufacturing strains for 10 nanometer (nm, one billionth of a meter) class sixth era (1c) DRAM, which shall be utilized to the seventh era product HBM4E, will even be launched.
M15X, which is able to function with a complete of two clear rooms, will full its first clear room in Might subsequent 12 months. After finishing the clear room, it is going to start check manufacturing, and it takes about 6 months till mass manufacturing. If the schedule proceeds as deliberate, mass manufacturing quantity will pour out from the primary clear room of M15X round November subsequent 12 months. Moreover, SK Hynix plans to finish the second clear room across the finish of subsequent 12 months. When M15X operates at 100% capability round mid-2027, it’s anticipated to supply roughly 50,000 DRAM wafers month-to-month primarily based on 12-inch wafers.
SK Hynix is accelerating DRAM manufacturing enhance as a result of it is a chance to beat the AI semiconductor provide scarcity occurring globally and enhance each gross sales and market dominance.
At the moment, corporations and international locations worldwide, together with america and China, in addition to Japan and Europe, are pouring a whole lot of trillions of gained to grab management within the AI business. Nevertheless, AI requires graphics processing items (GPU) that course of astronomical quantities of information and HBM, which is ultra-high efficiency, low-power DRAM, to safe inference and computational capabilities.
Nevertheless, HBM wanted to fabricate high-performance AI chips faces an absolute scarcity of provide in comparison with demand. Solely three corporations have the aptitude to supply HBM3E (fifth era) and HBM4 to be mounted on high-performance AI chips: SK Hynix, Samsung Electronics, and Micron Know-how of america. In such a construction, corporations that enhance HBM manufacturing inevitably achieve higher market dominance. SK Hynix plans to catch two birds with one stone — market management and gross sales maximization — by starting mass manufacturing of HBM4, the next-generation product, first on the earth in February subsequent 12 months, adopted by growing manufacturing of HBM3E, which at the moment has the very best market demand.
SK Hynix’s manufacturing enhance additionally comprises a plan to widen the hole with rivals. SK Hynix’s DRAM manufacturing scale is 500,000 wafers month-to-month, reaching 550,000 wafers even when mixed with M15X. In distinction, Samsung Electronics possesses manufacturing capability of as much as 650,000 wafers month-to-month.
HBM is a high-performance reminiscence semiconductor made by stacking DRAM. Samsung Electronics, leveraging its huge DRAM manufacturing functionality, is recovering HBM competitiveness, inflicting market dynamics to fluctuate. Notably, with market evaluation suggesting that Samsung Electronics (170,000 wafers month-to-month) surpasses SK Hynix (160,000 wafers month-to-month) in HBM manufacturing capability, Samsung Electronics is speeding to mass-produce HBM4 by enhancing its technological capabilities. SK Hynix intends to shake off Samsung Electronics’ pursuit by preemptively mass-producing HBM4 by way of superior know-how and growing HBM3E quantity.
SK Hynix plans to enter the manufacturing capability struggle by way of M15X within the quick time period and the Yongin semiconductor cluster within the medium to long run. The Section 1 fab of the Yongin cluster, which is able to obtain a complete funding of 120 trillion gained, goals for completion in Might 2027. The Section 1 fab consists of a complete of 6 clear rooms, which shall be accomplished and operated sequentially till 2030. When the Section 1 fab operates at 100% capability, roughly 350,000 wafers shall be added month-to-month, considerably growing SK Hynix’s whole manufacturing capability to 900,000 wafers month-to-month.
The monetary funding business predicts that SK Hynix’s market share will exceed 50% subsequent 12 months resulting from its technique of first HBM4 mass manufacturing and HBM3E manufacturing enhance. Samsung Electronics is predicted to stay within the 30% vary, whereas Micron is projected to remain round 20%. Notably, SK Hynix’s HBM4 provide is extremely prone to enhance considerably along with Nvidia’s next-generation AI accelerator Rubin launch within the fourth quarter of subsequent 12 months. SK Hynix plans to solidify its No. 1 place in HBM by beginning HBM4 mass manufacturing in February subsequent 12 months and M15X operations in Might. An business insider mentioned, “The HBM market has now entered Spherical 2, the place steady provide functionality turns into core competitiveness past easy know-how competitors,” and predicted, “HBM4 mass manufacturing in February subsequent 12 months and M15X operations in Might shall be a watershed second for SK Hynix to solidify its ‘No. 1’ place.”
In the meantime, SK Hynix is predicted to proceed attaining the most important efficiency in its historical past primarily based on its management within the high-value HBM market. Working revenue within the third quarter of this 12 months recorded 11.383 trillion gained, and fourth quarter revenue is predicted to succeed in 15 trillion gained. Annual working revenue forecast for subsequent 12 months is estimated to succeed in as much as 93 trillion gained.
