Shares of SK hynix (OTCPK:HXSCF) jumped about 7% on the Korea Exchange on Friday after the company said it has completed development and finished preparation for mass production of HBM4, a next-generation memory product vital for AI work.
SK hynix is a major supplier of High-Bandwidth Memory, or HBM chips to Nvidia (NASDAQ:NVDA), surpassing rival Samsung Electronics (OTCPK:SSNLF). Micron Technology (NASDAQ:MU), to a lesser extent, is also a competitor of the two companies in this space.
“Completion of HBM4 development will be a new milestone for the industry,” said Joohwan Cho, Head of HBM Development at SK hynix, who has led the development. “By supplying the product that meets customer needs in performance, power efficiency and reliability in timely manner, the company will fulfill time to market and maintain competitive position.”
The South Korean company said that with the increase in AI demand and data processing, the need for HBM for faster system speed is surging. SK hynix expects HBM4, with increased bandwidth and power efficiency, to be the optimal solution to meet customers’ needs.
SK hynix noted that the product’s bandwidth has doubled and power efficiency has improved 40% compared to the previous generation.
“HBM4, a symbolic turning point beyond the AI infrastructure limitations, will be a core product for overcoming technological challenges. We will grow into a full-stack AI memory provider by supplying memory products with the best quality and diverse performance required for the AI era in a timely manner,” said Justin Kim, president and head of AI Infra at SK hynix.