Samsung’s archrival enters crucial partnership with Nvidia’s closest ally to deliver key next-generation memory: SK Hynix partners with TSMC to advance HBM development, but move could encourage TSMC to look like Intel ?
South Korean memory giant SK Hynix, which recently announced plans to build the world’s largest chip factory, has now announced a major partnership with top Taiwanese semiconductor foundry TSMC.
The two companies aim to strengthen their positions in the fast-growing AI market by developing and manufacturing the next generation of High Bandwidth Memory, known as HBM4.
Production, scheduled for 2026, will use TSMC’s state-of-the-art packaging technology. The initial focus of the project will be on improving the performance of the base chip, the element of HBM that connects directly to the GPU. SK Hynix will reportedly adopt TSMC’s advanced logic process for the HBM4 base chip, allowing additional functionality to be packed into minimal space. The two companies plan to optimize the integration of SK Hynix’s HBM and TSMC’s CoWoS (Chip on Wafer on Substrate) technology.
A strategic move for TSMC
βWe expect that a strong partnership with TSMC will help accelerate our efforts to openly collaborate with our customers and develop the best-performing HBM4 in the industry,β said Justin Kim, president and head of AI Infra at SK Hynix. βWith this collaboration, we will further strengthen our market leadership as a total AI memory provider by increasing competitiveness in the custom memory platform space.β
Dr. Kevin Zhang, Senior Vice President of TSMC’s Business Development and Overseas Operations Office, and Deputy Co-Chief Operating Officer, agreed, saying: βTSMC and SK Hynix have already built a strong partnership over the years. We have worked together to integrate the most advanced logic and state-of-the-art HBM in delivering the world’s leading AI solutions. As we look ahead to the next generation of HBM4, we are confident that we will continue to work closely together to deliver the best-integrated solutions to unlock new AI innovations for our mutual customers.β
This partnership is a strategic move for both TSMC and SK Hynix β if not more so β and demonstrates the company’s potential in a role beyond just foundry service provider. It is difficult to guess at the future, but should TSMC want to continue its growth trajectory, it may have to consider expanding its strategic horizons even further, a move that could allow it to compete with some of its partners such as AMD or even rivals such as Intel. .
Competition in the semiconductor industry is fierce and moving up the value chain β leveraging cutting-edge technology to generate higher margins β is a risky move, but one that could potentially be hugely rewarding for the Taiwanese chip giant.
Through Nikkei