NEWS AFFAIRS 7 : WHERE EVERY STORY HAS IT'S AFFAIR!
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Ai high performance chips boom in 2024
Analysts are raising concerns about a potential shortage of high performance and quality memory chips this year due to soaring demand, particularly in the field of artificial intelligence (AI). Companies like SK Hynix and Micron, which are major players in chip manufacturing, are facing dwindling supplies. These chips are essential for training large language models such as ChatGPT, as they help the AI retain information from previous interactions.
The complexity of producing these chips means that ramping up production is challenging, leading to anticipated shortages throughout 2024 and possibly into 2025. SK Hynix is taking steps to address this issue by investing in advanced packaging facilities in the United States and South Korea to expand production capacity. Similarly, Samsung is intensifying efforts to boost chip production to meet the growing demand.
Tech giants like Microsoft, Amazon, and Google are heavily investing in developing their own AI capabilities, driving up the need for these memory chips. This trend indicates a sustained demand for AI chips, including high-performance memory chips, at least through 2024. As a result, chipmakers are in a race to produce more advanced memory chips to keep pace with the AI boom.
In response to this demand, SK Hynix announced plans to commence mass production of its latest generation of high-bandwidth memory (HBM) chips, the 12-layer HBM3E, in the third quarter. Meanwhile, Samsung Electronics aims to begin mass production within the second quarter, having already shipped samples of the latest chip.
Overall, the industry is facing a critical need to scale up production of high-quality memory chips to support the expanding AI market. As demand continues to surge, companies are striving to innovate and increase production capacity to meet the growing needs of customers in the AI sector.
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