SK Hynix recently announced that the company will invest 103 trillion won (US$76.2 billion; US$1=1,351 won) by 2028 to strengthen its chip business and develop an AI value chain, as reported by Commercial Daily News on July 1. Of the total 103 trillion won, 80% or 82 trillion won (US$60.7 billion) will be dedicated to developing high-bandwidth memory (HBM). HBM is extensively used in generative AI chipsets, and SK Hynix is currently the sole supplier of HBM3 chips to Nvidia.

 

Taipei-based research institute Market Intelligence & Consulting Institute (MIC) predicts that the global HBM3E market will see modest volumes in 1Q 2024, with HBM3E becoming mainstream by 4Q 2024. HBM3E will account for over 50% of total HBM shipments this year, MIC stated. In 2023, the global HBM market was approximately US$4 billion, representing about 8% of the US$48.4 billion global DRAM market. This share is projected to increase to 10% to 15% in 2024. In addition to HBM chips, the company's technology will also be applied to AI data centers and AI voice assistants to build an AI value chain. Earlier this year, the Korean government announced a 26 trillion won (US$19 billion) subsidy for the development of chip businesses, especially chip design and foundry services.

 

The global DRAM market reached approximately US$50 billion in 2023, according to MIC. Samsung secured the top position with US$20.4 billion in revenue, capturing around 41% of the market share. SK Hynix followed with US$15.2 billion, holding a 31% market share. Micron came in third with US$11.8 billion, accounting for 24% of the market.