Nvidia's CEO Urges SK Hynix to Accelerate HBM4 Chip Supply

In a surprising move that underscores the fierce competition within the AI chip market, Nvidia CEO Jensen Huang has urged South Korean memory chip giant SK Hynix to expedite the supply of their next-generation high-bandwidth memory chips, known as HBM4, by an impressive six months. This information was revealed by SK Group Chairman Chey Tae-won during a recent announcement in Seoul.

Previously, SK Hynix had set a target to deliver these cutting-edge chips to customers in the latter half of 2025. However, a spokesperson from the company noted that Huang's request would allow for a faster deployment than their initial timeline, although specific details were not provided.

This urgent request is a clear indication of the skyrocketing demand for advanced, energy-efficient chips that play a crucial role in fueling Nvidia's graphic processing units (GPUs), which are now at the forefront of AI development. Notably, Nvidia dominates the global AI chip market with a commanding share exceeding 80 percent.

As SK Hynix races to meet this soaring demand for high-bandwidth memory chips, which are essential for processing large data sets in AI training, it faces stiff competition from industry giants like Samsung Electronics and Micron Technology.

According to Kwak Noh-Jung, CEO of SK Hynix, the company plans to supply the latest 12-layer HBM3E chips to an undisclosed customer this year, and is set to begin shipping samples of the advanced 18-layer HBM3E chips early next year. This positions SK Hynix strategically in the evolving landscape of AI technologies.

On the other hand, Samsung recently announced progress in negotiations for a supply deal with another major client after overcoming previous delays. They anticipate improved HBM3E products to be available in the first half of next year, with plans to launch their next-generation HBM4 chips by the latter half of 2024.

In response to these developments, the stock market reacted positively, with SK Hynix shares rising by 5.1 percent, while shares of Samsung gained 1 percent, contributing to a broader market increase of 1.6 percent.

As the race for dominance in AI technology accelerates, the stakes are higher than ever. Will the expedited availability of HBM4 chips tilt the scale in Nvidia's favor, or will competitors like Samsung and Micron catch up? Only time will tell!