According to a report from Korea media outlet Yonhap News Agency, South Korea’s memory export to Taiwan has surged by 225% in the first half of the year.

The primary driver of this increase is reportedly due to South Korean chipmaker SK hynix’s supply of HBM to U.S. AI chip giant NVIDIA, which packages its AI accelerators at Taiwan’s TSMC.

A researcher at the Korea Institutes for Industrial Economics & Trade, Kim Yang-paeng, also noted that the sharp increase in exports is likely related to SK hynix’s supplies for TSMC’s final packaging of AI accelerators.

The report from Economic Daily News further highlights the strong momentum in NVIDIA’s AI chip shipments, with TSMC, as the key manufacturing partner, receiving steady advanced process orders.

The report from Yonhap News Agency also cited data from the industry ministry and the Korea International Trade Association released on August 11th, showing that South Korea’s memory exports to Taiwan in the first half of the year grew by 225.7% year-on-year, reaching USD 4.26 billion.

This growth significantly outpaces the overall increase in South Korea’s memory exports, which was 88.7%. Additionally, Taiwan has become South Korea’s third-largest market for memory exports in the first half of the year, climbing two spots to surpass Vietnam and the United States.

Another Korean media outlet, The Korea Herald, noted that since the 2010s, South Korea’s annual memory exports to Taiwan have ranged between USD 1 billion and 4 billion. The latest data indicates that this year’s export volume may set a new record, potentially reaching USD 8 billion.

Read more

• [News] SK hynix CEO: Demand for Memory Chips to Remain Robust until 1H25, Driven by HBM
• [News] Samsung’s 8-layer HBM3e to Start Mass Production in Q3, Driving HBM Sales to Soar 3-5 Times in 2H24

(Photo credit: SK hynix)

As the demand for memory chips used in AI remains strong, prompting major memory companies to accelerate their pace on HBM3e and HBM4 qualification, SK hynix CEO Kwak Noh-jung stated on August 7 that driven by the high demand for memory chips like high-bandwidth memory (HBM), the market is expected to stay robust until the first half of 2025, according to a report by the Korea Economic Daily.

However, Kwak noted that the momentum beyond 2H25 “remains to be seen,” indicating that the company needs to study market conditions and the situation of supply and demand before making comments further. SK hynix clarified that was not an indication of a possible downturn.

According to the analysis by TrendForce, HBM’s share of total DRAM bit capacity is estimated to rise from 2% in 2023 to 5% in 2024 and surpass 10% by 2025. In terms of market value, HBM is projected to account for more than 20% of the total DRAM market value starting in 2024, potentially exceeding 30% by 2025.

SK hynix, as the current HBM market leader, said earlier in its earnings call in July that its HBM3e shipment is expected to surpass that of HBM3 in the third quarter, with HBM3e accounting for more than half of the total HBM shipments in 2024. In addition, it expects to begin supplying 12-layer HBM3e products to customers in the fourth quarter.

The report notes that for now, the company’s major focus would be on the sixth-generation HBM chips, HBM4, which is under development in collaboration with foundry giant TSMC. Its 12-layer HBM4 is expected to be launched in the second half of next year, according to the report.

Samsung, on the other hand, had been working since last year to become a supplier of NVIDIA’s HBM3 and HBM3e. In late July, it is said that Samsung’s HBM3 has passed NVIDIA’s qualification, and would be used in the AI giant’s H20, which has been developed for the Chinese market in compliance with U.S. export controls. On August 6, the company denied rumors that its 8-layer HBM3e chips had cleared NVIDIA’s tests.

Notably, per a previous report from the South Korean newspaper Korea Joongang Daily, following Micron’s initiation of mass production of HBM3e in February 2024, it has recently secured an order from NVIDIA for the H200 AI GPU.

Read more

• [News] SK hynix, TSMC, and NVIDIA Reportedly Forge Alliance to Develop Next-Generation HBM
• [News] SK hynix Secures up to USD 450 Million Funding for Indiana Packaging Facility under CHIPS Act

(Photo credit: SK hynix)

According to a report from Reuters citing industry sources, Samsung Electronics’ fifth-generation high-bandwidth memory (HBM3e) have passed tests by NVIDIA and could be used in NVIDIA’s AI processors.

The report further indicates that while no supply contract has been signed yet, one is expected soon, with potential deliveries starting in the fourth quarter of this year. The news also notes that the tested HBM3e chips are 8-layer, while Samsung’s 12-layer HBM3e have yet passed test.

However, in response to the matter, Samsung Electronics stated in a report from BusinessKorea on August 7 that they could not confirm stories related to their customers and that the report was not true.

The Samsung Electronics official cited by BusinessKorea also mentioned that, as previously stated during a conference call last month, the quality testing is still ongoing and there have been no updates since then.

Samsung had been working since last year to become a supplier of NVIDIA’s HBM3 and HBM3e. In late July, it is said that Samsung’s HBM3 has passed NVIDIA’s qualification, and would be used in the AI giant’s H20, which has been developed for the Chinese market in compliance with U.S. export controls.

Read more

• [News] Samsung’s HBM3e Rumored to be Certified by NVIDIA, Boosting DDR5 Price Increases in Q3
• [News] Samsung’s HBM3e Reportedly Passed NVIDIA’s Certification Though It Denies the Rumor

(Photo credit: Samsung)

Super Micro Computer, Inc. (Supermicro), a provider of servers and storage solutions, released its financial results for the fourth quarter of the fiscal year 2024 (ending June 30, 2024) on August 6. The revenue increased by 143.6% year-over-year (37.9% quarter-over-quarter) to USD 5.31 billion. The Non-GAAP diluted earnings per share (EPS) rose by 78.1% year-over-year (decreased by 6% quarter-over-quarter) to $6.25.

Supermicro forecasts that for the first quarter of the fiscal year 2025 (ending September 30, 2024), revenue will be between USD 6 billion and 7 billion (midpoint of USD 6.5 billion), and the Non-GAAP diluted EPS is expected to be between $6.69 and $8.27 (midpoint of $7.48).

Additionally, for the fiscal year 2025 (ending June 30, 2025), revenue is projected to be between USD 26 billion and 30 billion (midpoint of USD 28 billion). A report from MoneyDJ further cite sources, indicating that Supermicro’s fiscal year 2025 revenue is expected to reach USD 23.4 billion.

According to the Q4 financial report for the fiscal year 2024 released by Supermicro, the gross margin decreased from 17.0% in the same period last year to 11.2%, the lowest since the company started reporting quarterly results in May 2007 , and below the 15.5% reported in the third quarter of the fiscal year 2024.

Per wccftech’s report, the Super Micro earnings call marked the first opportunity to engage with a company integrated into NVIDIA’s AI ecosystem. Consequently, the company’s management faced numerous questions about potential GPU delays impacting its financial performance.

In response, Charles Liang, Supermicro’s Chief Executive Officer and Chairman of the Board, acknowledged that his company had heard about potential delays from NVIDIA.

However, he emphasized that Supermicro considers such delays as a normal possibility, noting that technology companies often experience slight advancements or postponements in their schedules.

In this instance, it seemed to Liang that NVIDIA had pushed out its timeline slightly, which he stated would not impact Supermicro’s ability to offer its customers new solutions like the H200 cooling system, given their extensive customer base. He concluded by saying that the overall impact of this delay on Supermicro should be minimal.

Read more

• [News] Foxconn Remains Unfazed Despite NVIDIA’s GB200 Delay, with Customers Aim to Secure Their Orders
• [News] Supermicro President Charles Liang Bullish on Direct Liquid Cooling, Targeting a 15% Market Share within Next Year

(Photo credit: Supermicro)

SK hynix, the current High Bandwidth Memory (HBM) market leader, announced on August 6^th that it has signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce to receive up to USD 450 million in proposed direct funding and access to proposed loans of USD 500 million as part of the CHIPS and Science Act. The funding, according to its press release, will be used to build a production base for semiconductor packaging in Indiana.

Earlier in April, the other two memory giants, Samsung and Micron, have secured funds under the CHIPS and Science Act as well, receiving USD 6.4 billion and USD 6.1 billion, respectively.

SK hynix also noted in its press release that it plans to seek from the U.S. Department of the Treasury a tax benefit equivalent of up to 25% of the qualified capital expenditures through the Investment Tax Credit program.

The South Korean memory chip maker also said that it will proceed with the construction of the Indiana production base as planned to provide AI memory products. Through this, it looks forward to contributing to build a more resilient supply chain of the global semiconductor industry.

The signing follows SK hynix’s announcement in April that it plans to invest USD 3.87 billion to build a production base for advanced packaging in Indiana in a move expected to create around 1,000 jobs. According to a previous report by The Wall Street Journal, the advanced packaging fab it is expected to commence operations by 2028.

As the major HBM supplier of AI giant NVIDIA, SK hynix has good reason to accelerate the pace of capacity expansion. The recent NVIDIA Blackwell B200, with each GPU utilizing 8 HBM3e chips, has also underscored SK hynix’s role in the critical components supply chain for the AI industry.

On the other hand, a week earlier, semiconductor equipment leader Applied Materials was said to be rejected for funding under the CHIPS act for a R&D center in Silicon Valley, which targets to develop next-generation chipmaking tools. It has tried to gain U.S. funding for a USD 4 billion facility in Sunnyvale, California, which was slated to be completed in 2026.

Read more

• [News] SK Hynix Reportedly Plans to Invest USD 4 Billion in Advanced Packaging Fab in Indiana
• [News] Samsung Receives USD 6.4 Billion Subsidy from US Government, Less than Intel and TSMC

(Photo credit: SK hynix)