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Nvidia supplier SK Hynix says HBM chips almost sold out for 2025

Nvidia supplier SK Hynix says HBM chips almost sold out for 2025

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Nvidia supplier SK Hynix says HBM chips almost sold out for 2025

South Korea’s SK Hynix (000660.KS) said on Thursday that its high-bandwidth memory (HBM) chips used in AI chipsets were sold out for this year and almost sold out for 2025 as businesses aggressively expand artificial intelligence services.

“The HBM market is expected to continue to grow as data and (AI) model sizes increase,” Chief Executive Officer Kwak Noh-Jung told a news conference. “Annual demand growth is expected to be about 60% in the mid-to long-term.”

SK Hynix which competes with U.S. rival Micron (MU.O) and domestic behemoth Samsung Electronics (005930.KS) in HBM was until March the sole supplier of HBM chips to Nvidia, according to analysts who add that major AI chip purchasers are keen to diversify their suppliers to better maintain operating margins. Nvidia commands some 80% of the AI chip market.

Micron has also said its HBM chips were sold out for 2024 and that the majority of its 2025 supply was already allocated. It plans to provide samples for its 12-layer HBM3E chips to customers in March.

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“As AI functions and performance are being upgraded faster than expected, customer demand for ultra-high-performance chips such as the 12-layer chips appear to be increasing faster than for 8-layer HBM3Es,” said Jeff Kim, head of research at KB Securities.

Samsung Electronics (005930.KS) which plans to produce its HBM3E 12-layer chips in the second quarter, said this week that this year’s shipments of HBM chips are expected to increase more than three-fold and it has completed supply discussions with customers. It did not elaborate further.

Last month, SK Hynix announced a $3.87 billion plan to build an advanced chip packaging plant in the U.S. state of Indiana with an HBM chip line and a 5.3 trillion won ($3.9 billion) investment in a new DRAM chip factory at home with a focus on HBMs.

Kwak said investment in HBM differed from past patterns in the memory chip industry in that capacity is being increased after making certain of demand first.

By 2028, the portion of chips made for AI, such as HBM and high-capacity DRAM modules, is expected to account for 61% of all memory volume in terms of value from about 5% in 2023, SK Hynix’s head of AI infrastructure Justin Kim said.

Last week, SK Hynix said in a post-earnings conference call that there may be a shortage of regular memory chips for smartphones, personal computers and network servers by the year’s end if demand for tech devices exceeds expectations.

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The Nvidia (NVDA.O) supplier and the world’s second-largest memory chipmaker will begin sending samples of its latest HBM chip, called the 12-layer HBM3E, in May and begin mass producing them in the third quarter.

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Don’t worry if your Android gets stolen, new Theft Detection Lock comes to rescue

Don’t worry if your Android gets stolen, new Theft Detection Lock comes to rescue

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Don't worry if your Android gets stolen, new Theft Detection Lock comes to rescue

Google revealed plans to introduce a ground-breaking security feature for Android devices: Theft Detection Lock at the Google I/O 2024 developer conference held on Wednesday.

This innovative addition is specifically designed to combat the rising threat of smartphone theft by automatically locking the device when suspicious activity is detected.

Powered by artificial intelligence, Theft Detection Lock utilizes advanced algorithms to identify common motions associated with theft.

For instance, if a device suddenly begins moving rapidly in the opposite direction, indicative of a potential theft scenario, the feature swiftly triggers a screen lock mechanism.

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This proactive measure aims to thwart thieves from easily accessing sensitive user data stored on the device.

In addition to Theft Detection Lock, Google also announced the introduction of an Offline Device Lock feature. This functionality serves as a safeguard against intentional disconnection from the network, a common tactic employed by thieves to bypass security measures.

Instances such as repeated failed authentication attempts will prompt the Offline Device Lock, providing an added layer of protection for users’ devices.

Google revealed plans to enhance device security with measures aimed at preventing remote factory resets initiated by thieves.

Under the forthcoming update, if a thief attempts to reset a stolen device, they will be unable to set it up again without the necessary device or Google account credentials. This strategic move renders stolen devices essentially unsellable, significantly diminishing the incentives for phone theft.

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Tesla must face vehicle owners’ lawsuit over self-driving claims

Tesla must face vehicle owners’ lawsuit over self-driving claims

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Tesla must face vehicle owners' lawsuit over self-driving claims

A U.S. judge on Wednesday rejected Tesla’s bid to dismiss a lawsuit accusing Elon Musk’s electric car company of misleading owners into believing that their vehicles could soon have self-driving capabilities.

The proposed nationwide class action accused Tesla and Musk of having since 2016 falsely advertised Autopilot and other self-driving technology as functional or “just around the corner,” inducing drivers to pay more for their vehicles. 

U.S. District Judge Rita Lin in San Francisco said owners could pursue negligence and fraud-based claims, to the extent they relied on Tesla’s representations regarding vehicles’ hardware and ability to drive coast-to-coast across the U.S.

Without ruling on the merits, Lin said that “if Tesla meant to convey that its hardware was sufficient to reach high or full automation, the plainly alleges sufficient falsity.”

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The judge dismissed some other claims.

Tesla and its lawyers did not immediately respond to requests for comment. Lawyers for Tesla vehicle owners did not immediately respond to similar requests.

The case was led by Thomas LoSavio, a retired California lawyer who said he paid an $8,000 premium in 2017 for Full Self-Driving capabilities on a Tesla Model S, believing it would make driving safer if his reflexes deteriorated as he aged.

LoSavio said he was still waiting for the technology six years later, with Tesla remaining unable “even remotely” to produce a fully self-driving car.

The lawsuit seeks unspecified damages for people who since 2016 bought or leased Tesla vehicles with Autopilot, Enhanced Autopilot and Full Self-Driving features.

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Tesla has for many years faced federal probes into whether its self-driving technology might have contributed to fatal crashes.

Federal prosecutors are separately examining whether Tesla committed securities fraud or wire fraud by misleading investors about its vehicles’ self-driving capabilities, according to three people familiar with the matter.

Tesla has said Autopilot lets vehicles steer, accelerate and brake in their lanes, and Full Self-Driving lets vehicles obey traffic signals and change lanes.

But it had acknowledged that neither technology makes vehicles autonomous, or excuses drivers from paying attention to the roads.

The case is In re Tesla Advanced Driver Assistance Systems Litigation, U.S. District Court, Northern District of California, No. 22-05240.

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Microsoft asks hundreds of China staff to relocate

Microsoft asks hundreds of China staff to relocate

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Microsoft asks hundreds of China staff to relocate

Microsoft is asking about 700 to 800 people in its China-based cloud-computing and artificial-intelligence operations to consider transferring outside the country, the Wall Street Journal reported on Thursday.

The employees, mostly engineers with Chinese nationality, were earlier in the week offered an option to transfer to countries including the U.S., Ireland, Australia and New Zealand, the report said, citing people familiar with the matter.

The move comes amid spiralling US-China relations as the Biden administration cracks down on various sectors of Chinese imports, including electric vehicle (EV) batteries, computer chips and medical products.

A Microsoft spokesperson told the Journal that providing internal opportunities is part of its global business and confirmed the company had shared an optional internal transfer opportunity with a subset of employees. 

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Reuters reported earlier this month that the U.S. Commerce Department is considering a new regulatory push to restrict the export of proprietary or closed source AI models, whose software and the data it is trained on are kept under wraps.

The spokesperson, however, told the newspaper that the company remains committed to the region and will continue to operate in China.

Microsoft didn’t immediately respond to a Reuters request for comment.

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