SK hynix and Taiwan’s TSMC have established an “AI semiconductor alliance.” SK hynix, riding the wave of generative AI popularity, has emerged as a leader in the high bandwidth memory (HBM) market, while TSMC is the world’s largest semiconductor foundry. The strategy aims to consolidate the companies’ victory in the AI semiconductor market by pooling their technological capabilities for next-generation AI semiconductor packaging. This AI semiconductor alliance is interpreted as a move to form a united front against Samsung Electronics, which has taken significant steps in the AI semiconductor market.
According to the semiconductor industry on Feb. 7, SK hynix has established a “One Team Strategy,” including the development cooperation of the 6th generation HBM, HBM4, with Taiwan’s TSMC. Both companies are expanding their influence in their respective markets, with TSMC dominating by manufacturing Nvidia’s graphics processing units (GPUs), and SK hynix surpassing a 50% market share in the HBM market that supports GPU computations.
The collaboration between the two companies is expected to kick off with TSMC handling some processes for the next-generation HBM, known as HBM4. TSMC is anticipated to pursue a packaging strategy that significantly improves compatibility compared to existing products.
A high-ranking official in the semiconductor industry explained, “The importance of packaging in next-generation AI semiconductors is increasing. The cooperation between these two leading companies will have a significant impact.”
The collaboration is analyzed as an intention to check Samsung Electronics. Last year, during the worst semiconductor downturn, Samsung Electronics fell behind the two companies in the AI semiconductor field due to delayed business decisions. Samsung competes with TSMC in the foundry market and with SK hynix in the memory semiconductor market.
Lagging behind in the HBM3 market, Samsung Electronics aims to overturn the situation in the HBM4 market with a “turnkey strategy.” As Samsung conducts both memory semiconductor and foundry businesses, it aims to leverage the capabilities of both divisions to make a comeback in the HBM4 market, requiring cutting-edge technology. Samsung Electronics is the world’s leading memory semiconductor company and the second-largest foundry company after TSMC.
Particularly, the visit of Sam Altman, CEO of OpenAI, to South Korea to discuss AI semiconductor development and production with Samsung Electronics highlights Samsung’s strategy at a crucial time. Samsung’s strengths are becoming more prominent in building a front against Nvidia, driven by OpenAI’s initiatives.