During trading on June 18th, SK Hynix shares surged over 3%, reaching a new all-time high.

On June 18th, SK Hynix (000660.KS) announced it has provided samples of its seventh-generation High Bandwidth Memory, HBM4E, to key customers. The product features 12 layers. The company stated it will collaborate with clients to ensure timely mass production.

The Race for Early Samples

Industry expectations had previously suggested SK Hynix might not send HBM4E samples until July, making this delivery earlier than anticipated. According to SK Hynix, the new generation product offers performance improvements over HBM4, with a maximum pin speed of 16 Gbps. It also provides over a 20% increase in power efficiency, enhancing data processing capabilities for AI training and inference, while reducing thermal resistance by approximately 17%. This generation achieves a capacity of 48GB through a 12-layer stack using MR-MUF (Mass Reflow-Molded Underfill) technology.

SK Hynix maintains a development roadmap for its HBM products. In March of last year, the company delivered 12-layer HBM4 samples to key customers and began mass production later that year. This year, in addition to providing 12-layer HBM4E samples, SK Hynix also plans to introduce a 16-layer version of HBM4. Beyond standard HBM products, the company is currently advancing its custom HBM business.

Competitive Moves in the Market

Prior to SK Hynix's sample delivery, Samsung Electronics Co., Ltd. (SSNLF) had already taken a step forward. After achieving mass production and shipment of 12-layer HBM4 earlier this year, Samsung announced on May 29th that it was sending 12-layer HBM4E samples to major clients. Samsung's HBM4E product offers a pin speed of 14 Gbps, representing a performance improvement of over 20% compared to HBM4, indicating a further increase in data transfer speeds.

Beyond HBM4E, Samsung also plans to expand the capacity of its HBM4 to include 32GB 8-layer and 64GB 16-layer configurations. Furthermore, Samsung anticipates beginning deliveries of custom HBM samples to customers in 2027 and expects its HBM sales to more than triple this year.

Micron Technology Inc. (MU.O) is also participating in the competitive race. Micron's 12-layer 36GB HBM4 product entered mass production and shipment in the first quarter of this year, and the company has already provided samples of a 16-layer 48GB HBM4 to customers. The industry expects Micron to deliver HBM4E samples by the second half of this year at the latest. Micron has previously indicated that HBM4E development is progressing smoothly, with plans to gradually expand production scale by 2027.

Currently, Samsung Electronics and SK Hynix appear to be progressing faster with the new HBM4E generation. Being first to provide samples to key customers allows for earlier performance verification and optimization work, helping companies seize a market advantage.

Market Dynamics and Outlook

From a market structure perspective, SK Hynix, Samsung Electronics, and Micron Technology are the primary HBM suppliers. According to data from market research firm TrendForce, last year's HBM production bit share was approximately 59% for SK Hynix, 20% for Micron, and 20% for Samsung, with SK Hynix holding over half the market. However, competition is intensifying this year as all three manufacturers have entered NVIDIA Corporation's supply chain. TrendForce estimates SK Hynix's share may shrink to around 50%, though the overall HBM market size is also expected to grow significantly, surpassing 300 billion gigabits this year.

TrendForce further projects that by the end of 2025, 2026, and 2027, the total HBM wafer input from these three suppliers will account for 18%, 22%, and 30% of total DRAM wafer input, respectively. The crowding-out effect of HBM on total DRAM capacity will intensify, providing strong support for suppliers to increase HBM prices.

The increased demand for memory products like HBM, coupled with market supply shortages and price hikes, is also prompting downstream hardware manufacturers to adjust their prices upward. Apple CEO Tim Cook indicated that due to a significant increase in memory chip costs, the company plans to raise product prices.

During trading on June 18th, SK Hynix shares rose over 3% to a record high, with a market capitalization of 1859 trillion won (approximately $1.2 trillion). Shares of Samsung Electronics gained 0.79%. On the previous trading day, June 17th (local time), shares of Micron Technology advanced 2.2%.