SK hynix anticipates explosive growth in HBM sales amid tariff concerns

In South Korea, SK hynix recently held its annual shareholders meeting where executives indicated a bright future for the company driven by robust demand for memory products. CEO Kwak Noh-jung announced that the company is nearing the conclusion of discussions regarding sales of high bandwidth memory (HBM) for 2026, suggesting all manufactured HBM might be pre-sold before it even reaches the factory's output. This pattern mirrors the current year, indicating strong market demand, particularly from clients like Nvidia, which depend on this type of memory to enhance GPU performance. In light of this increasing demand, there has been a notable surge in orders for semiconductors in recent weeks, as various companies strive to secure supplies ahead of anticipated tariffs on semiconductor imports into the U.S. President Donald Trump has proposed a potential 25% tariff on imported chips and indicated that the rate could increase significantly over time. This uncertainty surrounding the tariff situation has prompted a race among buyers to secure semiconductors promptly. The company has also reported success in advancing its new product line, with the early delivery of its first 12-layer HBM4 samples. These chips are designed to process over two terabytes of data per second, surpassing the speed of the previous generation HBM3E by more than 60%. SK hynix aims to ramp up mass production in the second half of the year, indicating confidence in its production capabilities and market reception. Moreover, amid discussions of new competitors in the semiconductor sector, particularly referring to Chinese company DeepSeek, CEO Kwak expressed that while such developments may present challenges, they could ultimately lead to greater adoption of AI technologies. This shift may drive increased demand for SK hynix’s products, as more customers seek out high-performance memory solutions for their applications. Such optimistic assessments about future sales reflect both a confident outlook for the company and recognition of the industry's shifting landscape driven by technological advancements.