South Korean chipmaker SK Hynix, a key supplier to Nvidia, says it has already sold out all of its 2024 production of high-bandwidth stacked DRAM memories, crucial for AI processors in data centers. That's a problem, given the demand for HBM chips right now.
However, a solution could have been presented, as reports say that SK Hynix is in talks with Japanese firm Kioxia Holdings to jointly produce HBM chips.
SK Hynix, the world's second-largest memory chip maker, is a major shareholder in Kioxia, the world's second-largest NAND flash memory maker, and if the deal goes ahead, high-performance chips could be produced in Kioxia-cooperated facilities. and U.S.-based Western Digital Corp. in Japan.
A merger is on the cards
What makes this situation even more interesting is that Kioxia and Western Digital have been in talks to merge, something that SK Hynix opposes for fear that this will reduce its opportunities with Kioxia. As SK Hynix is a major shareholder in Kioxia, the merger of the Japanese company and Western Digital cannot go ahead without its blessing, and this new move could be seen as an important sweetener to help things progress.
After news of the potential deal broke, SK Hynix issued a statement saying simply: “There is no change in our stance that if there is an opportunity for collaboration, we will engage in a discussion on that matter.”
If the merger between Kioxia and Western Digital goes through, it will potentially make the company the largest NAND memory manufacturer on the planet, surpassing current leader Samsung, so there is a lot to play for.
He Korea Economic Daily says of the move: “The partnership is expected to consolidate SK Hynix's leadership in the HBM segment, which it splits almost equally with Samsung Electronics. Kioxia is likely to transform NAND flash lines into those for HBM, used for generative AI applications, high-performance data centers and machine learning platforms, contributing to a revival of Japan's semiconductor market.”
