SK Hynix Plans Expanded GDDR7, HBM4 Production Amid AI Chip Demand

SK Hynix, a key supplier of high-bandwidth memory (HBM) products for Nvidia, reported record quarterly profits driven by strong demand for AI chips, particularly 12-layer HBM3E products. The company plans to increase its investment in 2025 to expand production capacity, including opening a new plant in South Korea later this year and completing another by 2027, to meet the growing AI-driven demand. SK Hynix is actively developing 24 Gb GDDR7 memory modules that will enhance VRAM capacities for next-generation GPUs, and it is preparing to launch HBM4 memory featuring customizable logic dies for AI workloads. The firm expects to double HBM sales year-over-year and is investing in advanced manufacturing facilities both in South Korea and the U.S. Despite strong growth prospects, SK Hynix faces risks from U.S. tariff policies and intensifying competition from rivals like Samsung and Micron. Nonetheless, the company remains confident in sustained AI chip demand fueled by upcoming product launches and AI infrastructure needs.