SK Hynix, Challenging Samsung Over HBM
Global Moves Focused on AI and Semiconductors
Choi Tae-won, chairman of SK Group, was confirmed to have met with Jensen Huang, CEO of the U.S. semiconductor company Nvidia, in Silicon Valley, USA, on the 24th (local time). The meeting attracted attention as it took place amid competition between SK Hynix and Samsung Electronics in the global memory sector.
Instagram photo of SK Chairman Chey Tae-won meeting Jensen Huang, CEO of NVIDIA, on the 24th (local time). [Photo by Chey Tae-won]
Chairman Choi is reported to have discussed ways to strengthen the partnership between the two companies with CEO Huang. Industry insiders believe it is highly likely that they discussed cooperation related to SK Hynix's High Bandwidth Memory (HBM) and SK Telecom's AI business. Nvidia is a leader in artificial intelligence (AI) chips, controlling 80% of the global AI chip market.
Chairman Choi is known to have a close personal relationship with CEO Huang. On the 25th, Choi shared a photo on his Instagram with CEO Huang. In the photo, they are seen conversing while looking at a handwritten message from CEO Huang on an Nvidia brochure. CEO Huang referred to Chairman Choi by his English name, Tony, and wrote a handwritten message saying, "For a partnership to create the future of AI and humanity together!"
SK Hynix has effectively secured leadership in the HBM market by being the sole supplier of Nvidia’s 4th generation HBM, HBM3, which is installed in Nvidia’s AI graphics processing units (GPUs). In March, SK Hynix was the first memory company to mass-produce the 5th generation HBM3E 8-stack product and began supplying it to Nvidia. Additionally, at Nvidia’s annual developer conference 'GTC 2024,' SK Hynix showcased a physical sample of the HBM3E 12-stack.
Photo of the support message from Jensen Huang, CEO of NVIDIA, revealed by Chey Tae-won, Chairman of SK. [Photo by Chey Tae-won Instagram]
However, tensions have recently arisen between SK Hynix and Samsung Electronics over HBM. Last month, at 'GTC 2024,' CEO Huang described Samsung Electronics as an "extraordinary company" and mentioned that Nvidia is "testing Samsung’s HBM." He also visited Samsung’s booth in person and signed "JENSEN APPROVED" on a physical sample of Samsung’s HBM3E 12H (High, 12-stack), expressing high expectations for Samsung’s HBM products. Furthermore, in May last year, Samsung Electronics Chairman Lee Jae-yong visited Silicon Valley and met with CEO Huang.
Some view this as an intense technological competition between Korean semiconductor companies targeting Nvidia as a customer. There is also speculation about the establishment of an "AI semiconductor network" involving Nvidia, Samsung Electronics, and SK Hynix.
Meanwhile, Chairman Choi is believed to have met with CEOs of tech companies, including CEO Huang, during this business trip. As one of SK’s key management themes this year is "global cooperation," it appears that the group is continuing its global activities centered on AI and semiconductors.
Since the end of last year, Chairman Choi has been actively visiting SK Hynix’s Silicon Valley branch, investment firms, and the world’s top semiconductor lithography equipment company, the Netherlands-based ASML. He has also attended the world’s largest home appliance and IT exhibition 'CES 2024' and the Mobile World Congress (MWC). In October last year, at the 'SK CEO Seminar' held in Paris, France, he emphasized expanding global infrastructure at the group level to enhance business competitiveness and cooperation synergy among companies and countries. In particular, AI and semiconductors are seen as growth engines for the group, with Chairman Choi strongly supporting them.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
