Taiwan's Digitimes reported that HBM4 memory chip prices are forecast to surge from approximately $2 per gigabit (Gb) in the second half of this year to $4-5 per Gb or higher next year, citing multiple industry sources. The anticipated price doubling is driven by exploding demand ahead of Nvidia's next-generation AI platform 'Verarubin' launch, combined with production bottlenecks and the expansion of long-term supply agreements (LTA). Major AI customers are securing volumes through 3-5 year contracts, with analysts projecting that roughly half of total production capacity could be allocated to these priority clients starting next year. The market dynamics are expected to further strengthen the negotiating leverage of Samsung Electronics and SK Hynix, as rising DDR5 profitability also supports upward pricing pressure.
Digitimes Forecasts HBM4 Price Surge to $4-5 Per Gigabit
Taiwan's Digitimes projected that HBM4 pricing will climb from approximately $2 per Gb in the second half of this year to $4-5 per Gb or more next year. The report cited production bottlenecks and the expansion of long-term supply contracts as key factors driving the price increase. Large AI customers are locking in supply through 3-5 year agreements, with industry analysis suggesting that starting next year, approximately half of total production capacity could be prioritized for these contract holders. Rising DDR5 profitability is also identified as a variable supporting the price increases, according to the sources cited by Digitimes.
SK Hynix ADR Closes 13.1% Above Offering Price on Nasdaq Debut
SK Hynix's American Depositary Shares (ADS) closed at $168.49 on May 10 (local time), marking a 13.1% gain above the offering price of $149 on the first day of Nasdaq trading. Converting to Korean won, this represents approximately 2.533 million won per Korean share, which is 16.2% higher than the 2.18 million won closing price on the Korea Exchange on the same day. Morgan Stanley had projected a premium gap of 5-10%, though some institutions forecasted premiums reaching as high as 30%. Shinhan Investment & Securities presented four scenarios based on stock lending balance and premium trends, advising different response strategies for the domestic shares.
JP Morgan Acquires 5%+ Stakes in Four KOSDAQ Component Companies
JP Morgan disclosed on May 9-10 that it acquired stakes exceeding 5% in four companies: Lino Industrial (5.11%), TLV (5.13%), MK Electronics (5.15%), and Sungkwang Bend (5.20%). Based on closing prices on May 10, the total valuation of these holdings is approximately 381.1 billion won. The four companies' stock prices had declined roughly 40% from their annual highs at the time of purchase. Second-quarter operating profit consensus estimates for TLV and MK Electronics project year-over-year increases of 84.1% and 155.0%, respectively. Foreign investors have net purchased 506.2 billion won in the KOSDAQ market this month.
SK Group Chairman States Memory Industry No Longer Follows Traditional Cycles
SK Group Chairman Choi Tae-won stated on May 10 (local time) at the Nasdaq listing ceremony in New York that the traditional boom-and-bust cycle structure of memory semiconductors has changed. He emphasized that as AI models advance, demand for memory to store intermediate computation results through 'Key-Value Caching' will continue to increase, sustaining memory demand growth. Choi introduced a future 'Memory as a Service (MaaS)' business model and expressed concern that excessive memory price increases could negatively impact traditional industries such as retail and automotive. Regarding competition from Chinese semiconductor companies, he stated that preparation is necessary while committing to accelerate SK Hynix's strategic investments and technology option development.
FAQ
What is driving HBM4 prices to double next year?
According to Taiwan's Digitimes, HBM4 prices are expected to rise from approximately $2 per Gb in the second half of this year to $4-5 per Gb next year due to surging demand ahead of Nvidia's next-generation AI platform launch, production bottlenecks, and the expansion of long-term supply agreements with major AI customers.
How did SK Hynix ADR perform on its Nasdaq debut?
SK Hynix's American Depositary Shares closed at $168.49 on May 10 (local time), gaining 13.1% above the offering price of $149 on the first trading day. This represented a 16.2% premium compared to the Korean Exchange closing price of 2.18 million won per share on the same day.
Which KOSDAQ companies did JP Morgan invest in?
JP Morgan acquired stakes exceeding 5% in four KOSDAQ component companies on May 9-10: Lino Industrial (5.11%), TLV (5.13%), MK Electronics (5.15%), and Sungkwang Bend (5.20%), with combined holdings valued at approximately 381.1 billion won as of May 10 closing prices.
