SK Hynix Spurs Rally in Asian Semiconductor Stocks with Mass Production of Advanced AI Chip

SK Hynix shares surged by over 9% on Thursday after the South Korean chipmaker announced the mass production of a new high-bandwidth memory (HBM) chip designed for AI applications. The company revealed that the HBM3E chip, the first 12-layer version of its kind, will be ready for delivery by the end of the year. This updated chip boasts a 36 GB capacity, marking a 50% increase from the previous 8-layer version, all while maintaining the same physical thickness.

SK Hynix has positioned itself as a key player in the AI memory chip market, supplying HBM chips to major tech firms like Nvidia. With the new 12-layer HBM3E chip, the company seeks to solidify its dominance in the space, offering advanced solutions for high-end generative AI workloads.

HBM chips are dynamic random access memory (DRAM) components that are stacked vertically, allowing for more compact designs and reduced power consumption. The global HBM market is currently dominated by SK Hynix, Micron Technology, and Samsung Electronics.

Micron Technology also made headlines by issuing better-than-expected revenue and profit forecasts for its fiscal first quarter, citing strong demand for HBM chips. Micron expects $8.7 billion in revenue and profits of $1.74 per share, surpassing market estimates. This positive outlook, coupled with SK Hynix’s announcement, led to a rally in Asian semiconductor stocks.

In Japan, Tokyo Electron’s shares rose 7%, and Advantest climbed 5%, while Samsung Electronics saw a 3% gain. The South Korean Kospi index also responded positively, increasing by 2% as the sector benefitted from these developments.