en.Wedoany.com Reported - SK Hynix has begun to slow the expansion of its sixth-generation high-bandwidth memory HBM4, redirecting more capacity and resources toward general DRAM.

SK Hynix's HBM revenue share has already exceeded 40%, and its market position is solid, eliminating the need to continue aggressive expansion competition. In contrast, general DRAM faces a severe supply shortage, and its profitability has surpassed that of HBM, becoming a new focus for higher profits.

Sources indicate that SK Hynix has delayed the timeline for converting some HBM3E production lines to HBM4. HBM3E is the fifth-generation HBM. SK Hynix aims to prioritize increasing general DRAM supply capacity to seize market opportunities with higher profit margins. Given its solid HBM business foundation, the industry believes the company has no need to rush HBM4 production expansion or prematurely advance the seventh-generation product HBM4E. The profitability gap between general DRAM and HBM has reversed. In the first quarter of this year, the price per Gb of general DRAM remained lower than that of HBM, but its operating profit margin is estimated to be at least 15 percentage points higher.

A person familiar with SK Hynix's situation stated that from a management perspective, it is impossible to ignore competitor Samsung Electronics generating far higher profits from general DRAM than from HBM. Additionally, production expectations for Nvidia's next-generation chip Rubin, which uses HBM4, are being revised downward, leaving SK Hynix with no reason to accelerate HBM line conversion.

During its first-quarter earnings call, SK Hynix disclosed that the average selling price of DRAM rose by approximately 65%. Going forward, the company will focus on meeting demand for high-density server modules and mobile products.

However, SK Hynix's control over HBM4 supply may create opportunities for Samsung Electronics to expand its market share. According to Counterpoint Research data, SK Hynix held 57% of the HBM market share in the fourth quarter of last year, but this figure may gradually decline. If Samsung Electronics successfully mass-produces HBM4 in the second half of this year, SK Hynix's share could fall to the 50% to 60% range.

This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com