The semiconductor giant shifts focus to HBM3E and server DRAM in response to Nvidia's production difficulties.
Category: Business
In a notable shift within the semiconductor industry, SK Hynix is reportedly reducing its planned shipments of sixth-generation high bandwidth memory (HBM) for Nvidia by approximately 20 to 30 percent. This adjustment comes as Nvidia grapples with production challenges for its next-generation AI accelerator, the Vera Rubin, which is set to debut later this year.
Originally, SK Hynix planned to ship around 60 billion gigabits of HBM4 to Nvidia. Now, the company is revising this figure downward, citing the difficulties Nvidia is facing in ramping up production of the Vera Rubin series. As a result, some of the HBM4 shipments will be redirected to HBM3E and server DRAM products, which are expected to see increased demand.
According to reports from ZDNet, this decision reflects broader trends in the memory market. With the Vera Rubin series projected to account for a smaller share of Nvidia's high-performance GPU shipments—dropping from 29 percent to 22 percent—there is a clear shift in focus within the industry. Meanwhile, the Blackwell series, which utilizes HBM3E, is expected to increase its share from 61 percent to 71 percent.
Industry experts suggest that the reduction in HBM4 shipments does not indicate a decline in total memory demand. Instead, it reflects a strategic pivot, as SK Hynix aims to meet the needs of other products in its portfolio. A source familiar with the situation stated, "As the shipment volume of the Rubin series itself decreases, it has become inevitable to revise SK Hynix's HBM4 shipment plans. Instead, the volume will be transferred to HBM3E or other server-oriented LPDDR, so the total memory demand is not decreasing." This adaptability highlights SK Hynix's position as a dominant player in the HBM market.
As the semiconductor industry continues to evolve, the application of atomic layer deposition (ALD) technology is gaining traction among major manufacturers like Samsung Electronics and SK Hynix. ALD allows for precise control of chip thickness and uniformity at the atomic layer level, making it increasingly important as memory technologies shift from planar to vertical stacking structures.
According to SiSa Journal, the ALD application is now prevalent in the core layer deposition processes of leading semiconductor manufacturers, with a ratio of ALD to chemical vapor deposition (CVD) reaching 8 to 2. This shift is driven by the need for precision in increasingly complex memory structures, which require consistent thickness across all layers to prevent leakage and yield loss.
Market research firm Global Market Insights forecasts that the global ALD equipment market will grow significantly, from $4.7 billion in 2025 to $13.2 billion by 2035, at an annual growth rate of 10.9%. This growth reflects the rising demand for advanced semiconductor manufacturing techniques.
In line with these trends, SK Hynix is transitioning its existing 10nm class D-RAM lines to advanced processes, with plans to establish a new 6th generation D-RAM line capable of producing 110,000 units monthly. This move is expected to drive demand for ALD equipment, as the company seeks to maintain its competitive edge in the market.
Meanwhile, SK Hynix is also ramping up its workforce, announcing the hiring of production staff across several locations, including Icheon, Yongin, and Cheongju. The company is seeking high school and associate degree graduates, with applications due by April 22, 2026. This recruitment drive is part of a broader strategy to capitalize on the anticipated semiconductor super-cycle, which analysts predict could lead to record profits of 250 trillion won ($188 billion) this year.
With such projections, employees could see performance bonuses nearing 70 million won ($54,000), underscoring the lucrative opportunities in the semiconductor sector. The hiring announcement has generated considerable interest, as SK Hynix positions itself to meet the growing demands of the industry.
In addition to workforce expansion, SK Hynix has agreed to allocate 10% of its operating profit to excess profit sharing, a move that aims to benefit its employees directly. This approach reflects a commitment to sharing the financial success of the company with its workforce, fostering a sense of partnership and engagement among employees.
As the semiconductor industry navigates the challenges of production and technological advancement, the ability of companies like SK Hynix to adapt to changing market conditions will be key. The focus on HBM production adjustments and the increasing application of ALD technology highlight the dynamic nature of the sector.
Looking ahead, the industry closely as Nvidia works to resolve its production challenges and as SK Hynix continues to innovate and adapt its strategies. The interplay between these two giants will likely shape the future of semiconductor manufacturing and memory technology.
In this ever-evolving environment, companies are competing for market share and for talent, making the semiconductor industry a vibrant and competitive field for the foreseeable future.