As the largest supplier of HBM memory chips, the South Korean company SK hynix has so far retained the exclusive rights to supply NVIDIA accelerators for artificial intelligence systems. Current statistics show that the company is overwhelmed with orders for the supply of HBM3 and HBM3E chips until the end of 2024.
The publication reported this today, citing South Korean media. DigiTimes. According to the source, all production quotas for the production of HBM3 and HBM3E memories from SK hynix have already been reserved by customers. Over the next five years, the Korean manufacturer expects to increase its production volumes by 60-80% annually. At the same time, the number of server systems equipped with accelerators with HBM memory and working with artificial intelligence will grow by 40% annually, as the company expects. According to SK hynix forecasts, around 10% of all server systems put into operation this year will be based on artificial intelligence.
In general, the Korean manufacturer will increase the proportion of more profitable products in its program. In addition to HBM, the focus is on the production of DDR5 memory chips, but the company will aggressively reduce the production volumes of DDR4 this half of the year. In the current quarter, production volumes of NAND solid-state memory will be reduced by 10% as the market has not yet cleared the inventory surplus for this product type. Focusing on profitable memory types has already enabled SK hynix to increase DRAM average selling price by 10% sequentially and shipment volumes by 20% in the third quarter. Equally important, these moves allowed the company to return to profitability after two consecutive unprofitable quarters.