According to the expreview’s report, due to the surge in demand for AI applications and the market’s need for more powerful solutions, NVIDIA plans to shorten the release cycle of new products from the original 2 years to 1 year. Regarding its HBM partner, although validations for various samples are still in progress, market indications lean towards SK Hynix securing the ultimate HBM3e supply contract.
In a recent investor presentation, NVIDIA revealed its product roadmap, showcasing the data center plans for 2024 to 2025. The release time for the next-generation Blackwell architecture GPU has been moved up from Q4 2024 to the end of Q2 2024, with plans for the subsequent “X100” after its release in 2025.
Photo credit: NVIDIA
According to Business Korea, NVIDIA has already signed a prioritized supply agreement with SK Hynix for HBM3e, intended for the upcoming GPU B100.
While NVIDIA aims for a diversified supply chain, it has received HBM3e samples from Micron and Samsung for verification testing, and formal agreements are expected after successful validation. However, industry insiders anticipate that SK Hynix will likely secure the initial HBM3e supply contract, securing the largest share.
With this transaction, SK Hynix’s revenue for the fourth quarter of the 2023 fiscal year is poised to surpass KRW 10 trillion, marking a resurgence after a hiatus of 1 year and 3 months.
In the upcoming NVIDIA products scheduled for release next year, the newly added H200 and B100 will incorporate 6 and 8 HBM3e modules, respectively. As NVIDIA’s product line transitions to the next generation, the usage of HBM3e is expected to increase, contributing to SK Hynix’s profit potential.
SK Hynix is actively engaged in the development of HBM4, aiming to sustain its competitive edge by targeting completion by 2025.
TrendForce’s earlier research into the HBM market indicates that NVIDIA plans to diversify its HBM suppliers for more robust and efficient supply chain management. The progress of HBM3e, as outlined in the timeline below, shows that Micron provided its 8hi (24GB) samples to NVIDIA by the end of July, SK hynix in mid-August, and Samsung in early October.
Given the intricacy of the HBM verification process—estimated to take two quarters—TrendForce expects that some manufacturers might learn preliminary HBM3e results by the end of 2023. However, it’s generally anticipated that major manufacturers will have definite results by 1Q24. Notably, the outcomes will influence NVIDIA’s procurement decisions for 2024, as final evaluations are still underway.