SK Hynix and Micron are among the biggest beneficiaries of the ongoing AI boom. While hardware companies like Nvidia and AMD are usually in the spotlight, AI memory chip manufacturers are, in a way, the hidden forces propelling the ship. SK Hynix and Micron, along with Samsung, form the “big three” in AI memory chip manufacturing. Let’s discuss which AI memory giant is in a better position for domination.
SK Hynix vs. Micron: Which Will Come Out On Top?
SK Hynix is the leader in AI memory chips, controlling about 56%-58% of the HBM (High Bandwidth Memory) market share. Micron, on the other hand, controls about 20%-22% of the market. Don’t let Micron’s smaller market share fool you. Despite its smaller footprint, Micron still commands higher margins, somewhere in the ball park of 85%.
SK Hynix has strong ties with Nvidia. The company has also begun development on its upcoming HBM4 chips. SK Hynix currently has an advantage in HBM leadership and established customer relationships.
Micron was initially lagging behind its rivals. However, the company has made substantial innovations and developments to quickly close the gap. What makes Micron unique is that it is the only US-based company among the big three AI memory manufacturers. The company recently revealed a $250 billion investment plan for the US to ramp up domestic production.
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Demand for memory chips has skyrocketed after the coming of AI. AI data centers and chip manufacturers have eaten up substantial supply. The development has led to a surge in the price of consumer electronics. Micron may have a big part of play in the coming years as AI spending is expected to continue. Moreover, the gap between SK Hynix and Micron may become smaller as innovation, manufacturing execution, and the ability to meet growing demand pushes Micron to new heights.