HBM War: The Future of the Nvidia and SK Hynix Alliance

The relationship between Nvidia and SK Hynix over AI semiconductor dominance is entering an era of ‘cooperative competition’ beyond just being a ‘one team’ alliance.

• The origins of the Nvidia and SK Hynix ‘one team’ alliance
• Market upheavals in HBM and survival strategies of both companies
• The impact of next-generation HBM4 technology competition on the semiconductor market

The Legendary Signature and the Invisible Cracks

At Computex 2025 in Taiwan, Nvidia CEO Jensen Huang visited the SK Hynix booth and left inscriptions on the next-generation memory HBM4 wafer saying “JHH Loves SK Hynix!” and “One Team!” This moment seemed to symbolize the peak of the technological alliance between the AI chip sovereign and the leading memory powerhouse.

Nvidia, controlling 80% of the AI chip market, and SK Hynix, leading the High-Bandwidth Memory (HBM) market at its core, appeared to be more than just suppliers and partners—they seemed like a shared destiny.

However, even before the ink of this dazzling signature dried, massive tectonic shifts were beginning beneath the vast semiconductor chessboard. As the saying goes, “There are no eternal comrades,” will the ‘one team’ myth of these two giants last forever?

1. The Challenger’s Gamble That Created the ‘One Team’ Myth

The beginning of this great alliance was a harsh test given to the perennial second place.

“Just match Samsung’s output”

In 2015, Nvidia focused on HBM as a key component to unlock the potential of AI accelerator GPUs. While Samsung Electronics, the industry leader at the time, was the main player, SK Hynix was also given a chance—but the cold reality was the demand to “just match Samsung.”

The Underdog’s Bold Bet

However, being the ‘second’ paradoxically became SK Hynix’s weapon. Their fearless spirit of challenge drove them to boldly bet on the uncertain technology of HBM, which then accounted for less than 1% of the entire DRAM market. With little to lose, they aimed for much greater gains.

The early HBM division struggled so much it was called the ’executive graveyard,’ but they never gave up. Starting with the world’s first HBM development in 2013 and persistent technological advancement, by 2022 when the AI market exploded with ChatGPT, SK Hynix became the only partner capable of reliably supplying HBM3 for Nvidia’s latest GPUs.

Technical Explanation: Why AI is Enthralled by HBM

HBM (High-Bandwidth Memory) is essential in the AI era. If conventional DRAM is a single-story warehouse, HBM is a high-rise building stacking DRAM chips vertically. Using Through-Silicon Via (TSV) technology, the chips are connected to drastically reduce the footprint.

More importantly, it’s about bandwidth—the width of the data highway. If traditional memory data paths are like a two-lane road, HBM is a 1024-lane ultra-wide expressway, solving data bottlenecks and maximizing AI computation speed.

SK Hynix’s Secret Weapon: MR-MUF

SK Hynix’s decisive advantage comes from its proprietary packaging technology called MR-MUF (Mass Reflow Molded Underfill). This method fills and solidifies the gaps between vertically stacked DRAM chips with liquid protective material in one go, dramatically improving process efficiency and productivity.

Notably, this technology improves heat dissipation efficiency by 45%, a critical factor meeting Nvidia’s demanding high-performance standards.

2. The Emperor of the Empire, Nvidia’s New Rules

The success of the ‘one team’ alliance brought new strategic challenges for Nvidia, the emperor of the AI empire.

The Inevitability of Supply Chain Diversification

For Nvidia, relying solely on one company (SK Hynix) for the critical HBM component poses a significant long-term risk. To stabilize the empire, diversifying the supply chain became an inevitable step.

This is not betrayal of a partner but a rational management strategy to create competition, secure supply stability, and increase bargaining power. For the next-generation AI chips ‘Blackwell’ and ‘Rubin,’ Nvidia has already included Samsung Electronics and Micron in its supply chain alongside SK Hynix.

The Emergence of ‘Custom HBM’

A more fundamental change is the rise of ‘Custom HBM’. HBM is no longer a standardized product under international JEDEC standards but is evolving into a customized solution developed alongside AI chip design from the start.

This shift transforms the relationship between memory manufacturers and chip designers from a simple supplier-client model to a deep technical partnership. Nvidia is rewriting these rules and leading the market. Jensen Huang’s public praise is both gratitude to the top partner and a strong message to other suppliers: “You must meet this standard to become my partner.”

3. The Partner’s Counterattack: SK Hynix’s Kingdom Building

While Nvidia restructures its supply chain, SK Hynix is also executing survival strategies for the ‘post-Nvidia’ era.

Beyond Nvidia to the Entire AI Industry

Leveraging the technology gained through cooperation with Nvidia, SK Hynix is diversifying its customer base. It has redefined itself not as “Nvidia’s supplier” but as the memory supplier for the entire AI industry.

It has already secured major new customers such as Google (TPU), Amazon (AWS), and AMD, competitors of Nvidia and big tech companies developing their own AI chips, showing remarkable progress. This is a strong declaration of intent to build an independent ecosystem beyond Nvidia’s shadow.

The fact that both giants pursue diversification strategies simultaneously for their survival shows that what was once a monopolistic partnership is evolving into a ‘Symbiotic Decoupling’ relationship coexisting within a broader industrial ecosystem.

Comparison / Alternatives

HBM4 War: SK Hynix vs Samsung Electronics

The competition over the next-generation HBM4 market clearly reveals the philosophical differences between the two giants. Which strategy will become the standard in the AI era?

Conclusion: Dawn of the ‘Cooperative Competition’ Era

The relationship between Nvidia and SK Hynix signals not the end of an alliance but the beginning of a more complex and dynamic new era.

• Key Summary:

  1. End of the ‘One Team’ Era: The era of a single absolute ruler and partner dominating the market has ended, giving way to a multipolar world with multiple strong players competing.
  2. Rise of ‘Co-opetition’: The two companies are evolving into a new relationship form where they cooperate technically but fiercely compete in the market.
  3. Acceleration of Innovation: The intense technological competition around HBM4 and next-generation packaging will ultimately enhance AI semiconductor performance and stabilize supply chains, positively impacting the entire industry.

The signature left by Jensen Huang at Computex marked a monument to the peak of an era and a signal flare announcing the start of a much larger game. Now, we are about to witness one of the most exciting competitions ever played on the semiconductor chessboard.

Who do you think will be the ultimate winner in the HBM4 war?