In the rapid evolution of semiconductor technology, high-bandwidth memory (HBM) technology has become a key technology in the fields of high-performance computing, artificial intelligence, and graphics processing due to its excellent performance and energy efficiency ratio. Recently, SK hynix announced that it will introduce TSMC's 3nm process base die for customized HBM4 memory, which not only marks SK hynix's breakthrough in process technology, but also heralds a new era of HBM technology.
Technical details and performance improvements
SK hynix's HBM4 base die will be manufactured by TSMC using a 3nm process, which is expected to improve performance by 20%~30% compared to the previous 5nm process. This advancement is aided by the advanced nature of the 3nm process, which is able to provide higher integration and lower power consumption, which is critical for the operational efficiency of AI semiconductors. In addition, the HBM4 generation of basic die will be fully shifted to the logic semiconductor process and support customer-specific circuitry, which will improve the operational efficiency of the overall system.
Figure: SK hynix announced that it will introduce TSMC's 3nm process base die for custom HBM4 memory
Market dynamics and competitive landscape
This move by SK hynix is undoubtedly a positive response to the needs of large U.S. technology companies such as Nvidia. As the leader of the global AI chip market, Nvidia occupies more than 80% of the market share, and its new generation of GPUs requires larger capacity and lower power consumption memory support, and the HBM4 chip meets these needs. The HBM4 chip uses advanced manufacturing technology to provide higher data transfer rates and lower power consumption, and its bandwidth is nearly 50% higher than HBM3 to 1024 GB/s, which is suitable for scenarios such as artificial intelligence, deep learning, and high-end gaming.
However, the shortage of HBM4 chip capacity has become a bottleneck limiting Nvidia's growth. Recently, Nvidia CEO Jensen Huang asked SK hynix to supply HBM4 chips six months in advance. In addition, Tesla has recently expressed its intention to purchase HBM4 from SK hynix and Samsung Electronics for its AI data center and self-driving cars under development. Microsoft and Meta purchased customized HBM4 chips from Samsung Electronics.
In addition to SK hynix, competitors such as Samsung and Micron are also gradually expanding their market share. SK hynix plans to launch the first batch of HBM4 products in the second half of 2025, which is about the same timeline as Samsung Electronics. It is reported that Samsung Electronics' HBM4 basic die will be imported into the 4nm process.
Industry trends and geopolitical implications
The global semiconductor market is moving towards a trillion dollar scale driven by a variety of factors, and various segments such as memory chips, automotive semiconductors, and artificial intelligence chips show different development trends. As DRAM supply tightens and prices and margins rise, companies increase capital spending. At the same time, the development of 3D DRAM technology is expected to overcome the bottleneck of cost reduction of 2D technology. In addition, changes in the global political landscape have exposed the semiconductor industry to geopolitical tensions, and the technological and economic decoupling trend between the United States and China has affected the supply chain.
Editor's Observations & Observations
From a technical point of view, SK hynix's HBM4 memory technology using 3nm process is not only a major upgrade of existing technologies, but also an accurate prediction of future market demand. With the rapid development of AI and high-performance computing, there is a growing demand for high-performance memory, and this technological breakthrough by SK hynix will undoubtedly enhance its competitiveness in the global semiconductor market.
From a market perspective, SK hynix's competition with Samsung Electronics will further promote the development and innovation of HBM technology. The different technology path choices of the two companies will provide the market with a variety of product choices, and will also promote the technological progress of the entire industry.
From a geopolitical point of view, competition in the semiconductor industry has gone beyond the purely technical and market level, and is more related to national strategies and the stability of global supply chains. SK hynix's technological breakthrough is not only a victory for the company, but also a reflection of Korea's position in the global semiconductor industry.
Summary
SK hynix's introduction of HBM4 memory technology on the 3nm process is a technological breakthrough and a positive response to market trends. This initiative will strengthen SK hynix's competitiveness in the global semiconductor market and promote the development and innovation of HBM technology as a whole. With the continuous advancement of technology and the growth of market demand, HBM technology will continue to play a key role in high-performance computing, artificial intelligence and other fields. Morgan Stanley predicts that the global HBM market is expected to grow from $4 billion in 2023 to $33 billion in 2027, which shows the huge market potential and growth space of HBM technology.
