Nvidia Reportedly Allocates 70% of 2026 HBM4 Orders to SK Hynix

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According to sources cited by Yonhap News Agency, Nvidia has allocated roughly 70% of its anticipated 2026 demand for HBM4 (High Bandwidth Memory 4) to South Korean memory manufacturer SK Hynix. This procurement strategy precedes the commercial availability of HBM4, which is scheduled to enter mass production in late 2025. Independent analysis from Counterpoint Research corroborates SK Hynix's dominant position, estimating the company will supply 54% of global HBM4 chips in 2026.

HBM4 represents the next evolution in high-bandwidth memory technology critical for AI accelerators and high-performance computing. Unlike current HBM3E implementations, HBM4 moves the processor-to-memory interconnect to the bottom of the DRAM stack using Through-Silicon Via (TSV) technology. This architectural shift enables higher bandwidth and improved thermal characteristics essential for next-generation AI hardware. Nvidia's heavy allocation to SK Hynix signals confidence in the company's ability to deliver this complex packaging technology at scale.

This development extends SK Hynix's existing dominance in the HBM market. The company currently supplies the majority of HBM3E chips used in Nvidia's flagship H100 and H200 GPUs. Samsung and Micron remain key competitors, but neither has publicly demonstrated HBM4 samples meeting Nvidia's performance targets. Industry observers note that SK Hynix's early lead stems from aggressive R&D investment and established TSV manufacturing expertise.

Counterpoint's projection of SK Hynix holding 54% of the 2026 HBM4 market implies significant but not total dominance. Samsung and Micron are expected to capture the remaining share, though neither has disclosed comparable allocation percentages from Nvidia. Market dynamics could shift based on yield improvements, pricing, or unforeseen technical hurdles during HBM4's ramp-up phase.

The allocation carries substantial revenue implications. HBM commands premium pricing over conventional DRAM, with HBM4 expected to sell at even higher price points due to increased complexity. At projected 2026 volumes, SK Hynix's HBM4 revenue could exceed $25 billion. This positions HBM as a primary growth driver for memory manufacturers amid fluctuating commodity DRAM pricing.

Practical constraints warrant consideration. HBM4 production requires advanced packaging facilities and specialized equipment. SK Hynix's ability to fulfill 70% of Nvidia's demand hinges on successful capacity expansion throughout 2025. Any delays in EUV lithography tools or substrate availability could impact delivery timelines. Additionally, Nvidia typically maintains multiple suppliers for critical components; this allocation likely reflects SK Hynix's initial production capacity rather than an exclusive arrangement.

For the AI hardware ecosystem, continued HBM supply constraints appear likely. With Nvidia, AMD, and custom AI chip developers all requiring HBM4 for next-generation systems, competition for production capacity will intensify. System designers face ongoing challenges in power delivery and thermal management as memory bandwidth scales, potentially limiting real-world performance gains despite theoretical improvements.

Sources: Yonhap News Agency, Counterpoint Research