- Broadcom Reportedly Lands Big HBM Order From SK Hynix
- These chips will likely be used in AI hardware for at least one major CSP.
- This is part of a broader trend to reduce dependence on Nvidia.
Hyperscalers like Google, Meta and TikTok owner ByteDance are increasingly looking to diversify their AI hardware supply chains, reducing their dependence on Nvidia, which has long dominated the sector.
Broadcom is playing an increasingly important role in this shift, and in its recent earnings call, CEO Hock Tan told investors that the company has three hyperscale customers that each plan to deploy one million clusters. XPU for 2027, and that two have come close to it. additional hyperscalers also in advanced development for their own AI XPUs.
Although Broadcom has not named names, it is widely believed to be working with Google, Meta, ByteDance and OpenAI on custom AI chips. The company is also believed to collaborate with Apple to develop the iPhone maker’s first AI server chip, codenamed “Baltra,” which will provide advanced networking technologies essential for AI processing.
Bad news for Nvidia
According elecBroadcom has approached South Korean memory giant SK Hynix to provide the HBM it plans to use in custom AI chips for a “major” (but predictably unnamed) technology company.
elecSources say Broadcom actively sought out SK Hynix to supply its verified HBM solutions and secured a large on-demand memory order, with shipments expected to begin in the second half of 2025.
SK Hynix, Samsung’s biggest memory rival, is a key HBM supplier for Nvidia, which probably won’t be thrilled with this latest news.
To meet Broadcom’s growing demand, SK Hynix is adjusting its production capacity. elec says the company will increase its production of 1 trillion DRAM wafers (used as cores in its HBM) from 140,000 to 150,000 units to 160,000 to 170,000 units in 2025. However, this expansion has a negative effect: it could delay the launch of next-generation 1c DRAM from SK Hynix as the company prioritizes its immediate production needs.
