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The Star
2 days ago
- Business
- The Star
Exclusive-SK Hynix expects AI memory market to grow 30% a year to 2030
FILE PHOTO: The logo of SK Hynix is seen on its product during The 26th Semiconductor Exhibition (SEDEX 2024) in Seoul, South Korea, October 23, 2024. REUTERS/Kim Hong-Ji/File Photo SEOUL/SAN FRANCISCO (Reuters) -South Korea's SK Hynix forecasts that the market for a specialized form of memory chip designed for artificial intelligence will grow 30% a year until 2030,a senior executive said in an interview with Reuters. The upbeat projection for global growth in high-bandwidth memory (HBM) for use in AI brushes off concern over rising price pressures in a sector that for decades has been treated like commodities such as oil or coal. "AI demand from the end user is pretty much, very firm and strong,"said SK Hynix's Choi Joon-yong, the head of HBM business planning at SK Hynix. The billions of dollars in AI capital spending that cloud computing companies such as Amazon, Microsoft and Alphabet's Google are projecting will likely be revised upwards in the future, which would be "positive" for the HBM market, Choi said. The relationship between AI build-outs and HBM purchases is "very straightforward" and there is a correlation between the two, Choi said. SK Hynix's projections are conservative and include constraints such as available energy, he said. But the memory business is undergoing a significant strategic change during this period as well. HBM - a type of dynamic random access memory or DRAM standard first produced in 2013 - involves stacking chips vertically to save space and reduce power consumption, helping to process the large volumes of data generated by complex AI applications. SK Hynix expects this market for custom HBM to grow to tens of billions of dollars by 2030, Choi said. Due to technological changes in the way SK Hynix and rivals such as Micron Technology and Samsung Electronics build next-generation HBM4, their products include a customer-specific logic die, or "base die", that helps manage the memory. That means it is no longer possible to easily replace a rival's memory product with a nearly identical chip or product. Part of SK Hynix's optimism for future HBM market growth includes the likelihood that customers will want even further customisation than what SK Hynix already does, Choi said. At the moment it is mostly larger customers such as Nvidia that receive individual customisation, while smaller clients get a traditional one-size-fits-all approach. "Each customer has different taste," Choi said, adding that some want specific performance or power characteristics. SK Hynix is currently the main HBM supplier to Nvidia, although Samsung and Micron supply it with smaller volumes. Last week, Samsung cautioned during its earnings conference call that current generation HBM3E supply would likely outpace demand growth in the near term, a shift that could weigh on prices. "We are confident to provide, to make the right competitive product to the customers," Choi said. 100% TARIFFS U.S. President Donald Trump on Wednesday said the United States would impose a tariff of about 100% on semiconductor chips imported from countries not producing in America or planning to do so. Choi declined to comment on the tariffs. Trump told reporters in the Oval Office the new tariff rate would apply to "all chips and semiconductors coming into the United States," but would not apply to companies that were already manufacturing in the United States or had made a commitment to do so. Trump's comments were not a formal tariff announcement, and the president offered no further specifics. South Korea's top trade envoy Yeo Han-koo said on Thursday that Samsung Electronics and SK Hynix would not be subject to the 100% tariffs on chips if they were implemented. Samsung has invested in two chip fabrication plants in Austin and Taylor, Texas, and SK Hynix has announced plans to build an advanced chip packaging plant and an artificial intelligence research and development facility in Indiana. South Korea's chip exports to the United States were valued at $10.7 billion last year, accounting for 7.5% of its total chip exports. Some HBM chips are exported to Taiwan for packaging, accounting for 18% of South Korea's chip exports in 2024, a 127% increase from the previous year. (Reporting by Heekyong Yang and Hyunjoo Jin in Seoul and Max A. Cherney in San Francisco; Editing by Tom Hogue)
The Star
6 days ago
- Business
- The Star
South Korea says Samsung, SK Hynix will not be subject to 100% US chip tariffs
FILE PHOTO: The logo of SK Hynix is seen on its product during The 26th Semiconductor Exhibition (SEDEX 2024) in Seoul, South Korea, October 23, 2024. REUTERS/Kim Hong-Ji/File photo SEOUL: South Korea's top trade envoy Yeo Han-koo said on Thursday that Samsung Electronics and SK Hynix will not be subject to 100% U.S. tariffs on chips. Yeo said on radio that among various countries, South Korea will face the most favourable U.S. tariff rates on chips under the trade deal between Washington and Seoul. He did not elaborate. U.S. President Donald Trump said on Wednesday the United States will impose a tariff of about 100% on semiconductors imported from countries not producing in the U.S. or planning to do so. But it would not apply to companies that had made a commitment to manufacture in the U.S. or were in the process of doing so. Trump's comments were not a formal announcement and much remains unclear. Samsung has invested in two chip fabrication plants in Austin and Taylor, Texas, while SK Hynix has announced plans to build an advanced chip packaging plant and research and development facility for artificial intelligence products in Indiana. "While both Samsung and SK Hynix have made U.S. investments, there are doubts about whether SK Hynix's packaging plant alone would fully qualify for tariff exemptions," said Baik Gil-hyun, an analyst at Yuanta Securities. "Samsung, on the other hand, appears to be benefiting not only from that but also from news that it has joined Apple's supply chain." Apple said on Wednesday that Samsung Electronics will supply chips from its production plant in Texas for Apple products including iPhones. Shares in Samsung Electronics climbed 2.6% while shares in SK Hynix were trading up 0.6% in line with the broader market. Both companies declined to comment on Trump's remarks. - Reuters
The Star
24-07-2025
- Business
- The Star
Nvidia supplier SK Hynix boosts investment plan after record Q2 profit
FILE PHOTO: The logo of SK Hynix is seen at its booth during The 26th Semiconductor Exhibition (SEDEX 2024) in Seoul, South Korea, October 23, 2024. REUTERS/Kim Hong-Ji/File Photo SEOUL (Reuters) -Nvidia supplier SK Hynix on Thursday boosted its 2025 investment plan after posting a record quarterly profit as it seeks to alleviate investor concerns about slowing growth for artificial intelligence chipsets. The South Korean chipmaker expected a "low likelihood of sharp decline in demand" in the second half, citing a stable customer inventory level and demand growth driven by new model launches by customers. SK Hynix said it was on track to double high-bandwidth memory (HBM) chip sales for the full year compared to 2024. The company's revision of its capital expenditure to proactively respond to customer demand for next year, "appears to reflect its confidence" as it faces major competition from Samsung Electronics next year, said Ryu Young-ho, a senior analyst at NH Investment & Securities. In March, SK Hynix said it planned to finalise sales with customers for the 2026 volume within the first half of this year. "SK Hynix foresees that increasing competition among big tech companies to enhance inference of AI models would lead to higher demand for high-performance and high-capacity memory products," it said in a statement. SK Hynix reported a 9.2 trillion won ($6.69 billion) operating profit for the April-June period, up 69% from 5.5 trillion won a year earlier. That compared with a 9.0 trillion won average forecast by LSEG SmartEstimate, which is weighted toward analysts who are more consistently accurate. Revenue rose 35% to 22.2 trillion won during the quarter. Its profit is double the quarterly operating profit expected by crosstown rival Samsung Electronics , which this month projected a worse-than-expected 56% plunge in second-quarter operating profit due to weak AI chip sales. SK Hynix overtook Samsung Electronics as the world's top memory chip maker in the first quarter due to its leadership in HBM chips, a crucial component of AI chipsets designed by the likes of Nvidia that assist the processing of vast amounts of data to train AI models. After posting a series of record profits boosted by strong AI demand, SK Hynix is bracing for potential U.S. tariffs and rising competition from rivals in supplying advanced chips to Nvidia, analysts say. Earlier this month, U.S. President Donald Trump threatened to soon introduce tariffs on semiconductors. SK Hynix said in April that the proportion of its exports to the United States was not high, but analysts said the company could face pricing pressure from customers squeezed by U.S. tariffs. Last Thursday, SK Hynix saw its shares close about 9% lower after Goldman Sachs downgraded the stock to "neutral," expecting HBM prices would decline for the first time next year. Shares of SK Hynix are up 54.7% so far this year, outperforming the KOSPI's 32.7% rise. ($1 = 1,374.5800 won) (Reporting by Heekyong Yang and Joyce Lee and Hyunjoo Jin; Editing by Leslie Adler, Jamie Freed and Lincoln Feast.)
Fashion Value Chain
21-07-2025
- Business
- Fashion Value Chain
ZYOD Unveils 1 Lakh Sq. Ft. Smart Factory in Gurugram
ZYOD, a tech-first B2B apparel manufacturing company, has inaugurated its largest production facility at Building 7P, Gurugram, Haryana, expanding its footprint with a third excellence hub in just two years. This strategic addition underscores ZYOD's vision to provide scalable, ethical, and efficient manufacturing solutions for global fashion retailers. Covering over 1 lakh square feet, the advanced unit is equipped with 750+ high-performance machines, delivering an annual production capacity of more than 60 lakh garments. The facility adopts IoT-based tracking systems, automated shirt lines, and smart digital fabric processing units to boost precision, cut waste, and accelerate production timelines. Partial operations began on July 15, with the unit designed in alignment with ZYOD's sustainability roadmap. It features solar panel integration, a water treatment plant, and a robust waste management system. The facility also meets SEDEX compliance standards, ensuring responsible sourcing and ethical labor practices across operations. Ankit Jaipuria, Co-founder of ZYOD, shared, 'With 7P, we are not just building for scale but creating a future-ready, tech-enabled infrastructure that addresses the evolving needs of global retailers. This factory embodies speed, sustainability, and ethical fashion production.' Adding to the announcement, Ritesh Khandelwal, Co-founder, emphasized, '7P is a key milestone in our mission to become the go-to manufacturing partner for global fashion retailers. In two years, we've scaled from startup to serious enterprise—this launch bridges the infrastructure gap in Indian apparel manufacturing.' The new facility will generate employment for over 2,000 people, spanning skilled and semi-skilled roles, driving socio-economic impact in the region. The factory will support global retail leaders such as Marks & Spencer, Walmart, and Tesco, strengthening ZYOD's positioning as a tech-led, scale-ready manufacturing partner.
Associated Press
30-04-2025
- Business
- Associated Press
Phoenix Manufacturing Joins Global Movement Towards Sustainable & Ethical Production with RJC Certification
Thailand-based Phoenix Manufacturing earns RJC certification, launches new wholesale silver jewellery lines, and highlights as a rising ethical sourcing hub. SAMUT PRAKAN, THAILAND, April 30, 2025 / / -- Phoenix Manufacturing Co., Ltd. from Thailand, a globally established silver jewellery manufacturer and wholesaler, has officially earned certification from the Responsible Jewellery Council (RJC), marking a significant milestone in its ongoing commitment to ethical, sustainable, and responsible production practices. Phoenix Manufacturing earns RJC certification for ethical jewellery production in Thailand. The certification recognises Phoenix Manufacturing's adherence to rigorous international standards concerning human rights, labour practices, environmental impact, and responsible sourcing. As part of a growing network of companies aligning with globally respected frameworks, Phoenix joins an elite group of certified manufacturers that meet the RJC Code of Practices—a benchmark for integrity in the jewellery and watch supply chain. 'We take pride in every piece we create, combining responsible sourcing, compliance, and craftsmanship to meet the highest standards of ethics, quality, and trust,' said Rayan Ahmed, Head of Public Relations. As businesses increasingly look beyond China for production partners, Thailand has emerged as a prominent alternative, offering a combination of deep artisanal expertise and regulatory alignment with international standards to reassure global trade. Phoenix Manufacturing exemplifies this shift, providing sterling silver jewellery solutions that prioritise sustainability and quality. To meet immediate global demand, Phoenix Manufacturing is also preparing to launch two new white-label product lines for retailers and brands preparing for the upcoming season: A mixed-metal body jewellery collection featuring contemporary styles for the fashion-forward market. A sterling silver, flower-themed jewellery line inspired by nature's elegance and crafted with intricate detail. Both collections will be available for global shipping beginning 21 May 2025, through the company's factory-direct wholesale outlet. Phoenix Manufacturing operates under multiple internationally recognised compliance frameworks, including SEDEX, AMFORI BSCI, and now RJC. The company works exclusively with vetted suppliers for traceable sourcing and employs rigorous quality control processes to ensure product consistency and client confidence. For more information about the company's ethical manufacturing practices and wholesale jewellery solutions, visit their website. About Phoenix Manufacturing Co., Ltd. Phoenix Manufacturing Co., Ltd. is a Thailand-based jewellery manufacturer and wholesaler specialising in sterling silver and custom-designed pieces. With decades of experience serving international clients, Phoenix offers end-to-end production solutions, white-label services, and ethical sourcing backed by certifications such as RJC, SEDEX, and AMFORI BSCI. Known for its skilled craftsmanship, reliable global shipping, and commitment to responsible business practices, Phoenix is a preferred partner for retailers and brands across the U.S., Australia, and beyond. Sales Team Phoenix Manufacturing Co., Ltd. 21160308 ext. [email protected] Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
