TSMC, SK Hynix Team Up to Counter Samsung in AI Semiconductor Market

SK Hynix and Taiwan’s TSMC have formed an “AI semiconductor alliance” as a strategic move to enhance their collaboration in artificial intelligence (AI). The primary objective of this alliance is to strengthen the duo’s foothold in the AI semiconductor market by leveraging their combined technical prowess, particularly in developing next-generation AI semiconductor packaging.

SK Hynix is a prominent player in the high-bandwidth memory (HBM) sector. Concurrently, TSMC is the world’s largest semiconductor foundry. The initiative aims to create a unified front against Samsung Electronics, a key player in the sector.

SK Hynix has recently implemented a “One Team Strategy” in its collaboration with TSMC. This strategy includes joint efforts in developing the sixth generation of High Bandwidth Memory (HBM), called HBM4. TSMC is renowned for its manufacturing prowess in producing Nvidia’s Graphics Processing Units (GPUs). Similarly, SK Hynix has a commanding market share of over 50% in the HBM market.

TSMC plans to adopt a packaging strategy to significantly enhance compatibility compared to existing offerings, signaling a notable advancement in semiconductor technology.

Ahn Ki-hyun, executive director of the Korea Semiconductor Industry Association, emphasized the anticipated importance of this partnership. At the same time, SK Hynix refrained from divulging specific details regarding its collaboration with TSMC. The cooperation between these two industry leaders is anticipated to wield substantial influence, paving the way for advancements in AI semiconductor technologies.

Samsung Electronics, facing challenges in the High Bandwidth Memory 3 (HBM3) market, is strategizing to regain ground with a “turnkey strategy” in the forthcoming HBM4 market.

Leveraging its dual expertise in memory semiconductor production and foundry services, Samsung aims to capitalize on technology to reshape its position in the market. As the world’s second-largest foundry player following TSMC, Samsung’s concerted effort aims to rebound in the competitive landscape of AI semiconductor technologies.

The recent visit of Sam Altman, CEO of OpenAI, to South Korea for discussions on AI semiconductor development and production with Samsung Electronics sheds light on the company’s strategic focus during this critical juncture. Samsung’s initiatives align with its broader objective of bolstering its competitive stance against Nvidia, with the backing of OpenAI’s initiatives.

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