SK hynix 'drastically' raises next-gen HBM4 supply price in a 'war of nerves' with NVIDIA

SK hynix has reportedly "drastically" raised next-gen HBM4 supply pricing, as it is at a "war of nerves" with NVIDIA.

In a new report from Chosun picked up by @Jukanrosleve on X, we're hearing that SK hynix has decided to supply its 6th generation HBM (HBM4) 12-Hi stack memory to NVIDIA in the first half of this year at a price approximately 70% higher than its 5th generation HBM (HBM3E).

However, negotiations for additional HBM supply volumes are reportedly progressing slower than expected, presumably because Samsung and Micron are entering the HBM4 supply chain, with both companies delivering their own HBM4 samples. Until now, SK hynix has dominated over 90% of the cutting-edge HBM memory provided to NVIDIA, but starting with next-gen HBM4, Samsung and Micron will be expanding their supply volumes.

Chosun reports from industry sources that SK hynix has a unit price for its HBM4 12-Hi memory with NVIDIA in the $500 range for the first half of the year, meaning it's supplying the new HBM at 60-70% higher price than its HBM3E 12-hi memory, which was priced in the $300 range.

This price premium for HBM4 is analyzed to be the result of SK hynix securing its position as an exclusive supplier by negotiating ahead of competitors Samsung and Micron. HBM4 is more difficult to make as well, including applying a foundry (semiconductor contract manufacturing) process to the base die for the first time ever, another factor into its price increase.

A semiconductor industry official said: "Currently, SK Hynix is the de facto exclusive supplier of HBM3E 12-Hi products to NVIDIA and was the first to conclude initial HBM4 supply negotiations. However, negotiations for additional volumes are being delayed as NVIDIA has decided to watch the progress of quality tests from Samsung and Micron to lower product prices. If their entry into the market becomes a reality, SK Hynix's exclusive position will inevitably be shaken".