SK Hynix HBM3E 16-Layer Showcased at CES (Image provided by SK Hynix)
SEOUL, Jan. 23 (Korea Bizwire) — SK Hynix announced on January 23 that it expects its revenue from high-bandwidth memory (HBM) products to more than double in 2025 compared to the previous year, fueled by rising demand from the AI market.
The company plans to complete development and begin production of its sixth-generation HBM4 later this year.
HBM has become a key growth driver for SK Hynix, with 2024 HBM revenue increasing more than 4.5 times compared to 2023. During the fourth quarter of 2024, HBM accounted for over 40% of the company’s DRAM revenue, contributing to record-breaking annual earnings despite a broader slowdown in the memory market.
SK Hynix is focusing its investments on HBM and infrastructure, including its new M15X fab in Cheongju, slated to open in the fourth quarter of 2025.
The company is also collaborating with TSMC to enhance HBM4’s performance and efficiency, using advanced logic foundry processes for the first time in its base die.
The company has already begun supplying its HBM3E 12-layer product, launched in September 2024, and expects it to comprise more than half of its HBM3E shipments in the first half of 2025. SK Hynix also plans to introduce a 16-layer version of HBM4 in 2026, aligning with customer demand.
A rendering of the Yongin Semiconductor Cluster (Image provided by the city of Yongin)
In addition to its HBM advancements, SK Hynix emphasized the growing AI-driven shift in the memory market toward high-performance, high-quality products. Despite declining prices for legacy DRAM products like DDR4, the company reported a 10% increase in average selling prices (ASP) for DRAM, driven by strong HBM sales.
Looking ahead, SK Hynix anticipates AI memory demand will continue to grow, creating a steady long-term market for HBM products. The company has begun discussions with key customers regarding HBM supply volumes for 2026 and aims to secure long-term contracts to mitigate the high costs associated with HBM production.
While the company remains optimistic about AI-driven growth, it acknowledged challenges in the DRAM market, particularly from Chinese competitors.
However, SK Hynix expressed confidence in maintaining a competitive edge through superior performance and quality in high-end products like DDR5 and HBM.
An employee working at a semiconductor fab (factory) (Image courtesy of SK hynix)
SK Hynix plans to slightly increase DRAM production in line with market growth, while maintaining a conservative approach to NAND production, focusing on profitability and inventory normalization.
The company’s investments in 2025 are expected to rise compared to 2024, driven by HBM production and infrastructure projects, including the construction of its Yongin fab, scheduled to open in 2027.
SK Hynix’s commitment to cutting-edge memory technology reflects its strategic focus on AI applications and high-performance products, positioning the company for continued growth in an evolving semiconductor market.
Kevin Lee (kevinlee@koreabizwire.com)
