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TSMC, SK Hynix partner to develop next-generation memory chips

Published 04/18/2024, 08:16 PM
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Investing.com-- South Korean memory chip maker SK Hynix Inc (KS:000660) said on Thursday it had recently signed a deal with chipmaking giant TSMC (NYSE:TSM) to develop next-generation memory chips amid increasing demand from the artificial intelligence industry. 

SK Hynix said in a press release the two will collaborate to develop the sixth generation of high-bandwith memory chips (HBM4), which it plans to mass produce in 2026. The partnership will see the two leverage SK hynix’s memory chip expertise and TSMC’s foundry capabilities to develop the new chips. 

SK Hynix is among the world’s biggest maker of memory chips, and is currently the only developer of advanced HBM chips, demand for which has shot up in recent months amid increased interest in AI development. 

“With this cooperation in place, we will strengthen our market leadership as the total AI memory provider further by beefing up competitiveness in the space of the custom memory platform," Justin Kim, President and the Head of AI Infra, at SK Hynix said in a statement. 

The firm is a major supplier to AI darling NVIDIA Corporation (NASDAQ:NVDA), who uses SK Hynix’s HBM units in its AI processors.

TSMC- the world’s biggest contract chipmaker- has also benefited from increased, AI-fueled demand. The firm clocked stronger-than-expected first-quarter earnings this week, although a mildly softer outlook suggested that AI-driven chip demand may now be cooling. 

SK Hynix also faces increased competition in the HBM space, as rivals Samsung Electronics Co Ltd (KS:005930) and Micron Technology Inc (NASDAQ:MU) both recently signaled they will begin developing more products aimed at the AI industry. 

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