In a couple of ways, SK Hynix almost has to go the HBM route. Not only is this their key profit center, it's also a way for them to stay ahead of the competition that we don't hear that much about: the Chinese DRAM and NAND producers, lead by CXMT and YMTC, respectively. Both are expanding their capacities at breakneck speed, both do so with the strong encouragement from Beijing, and have no reason to stop growing. Apple essentially asking the Trump administration for permission to source some of their DRAM from CXMT* (the FT reported on this) is IMHO a glimpse of things to come in the next 12 - 18 months. Korean companies learned the hard way what happens when Chinese competitors move into a sector that was previously theirs - shipbuilding comes to mind.
*While Apple technically doesn't need such a permit, CXMT is, due to its history and ties to the People's Army, on the naughty list of the Pentagon, so Apple asking for a hall pass was and is politically a smart move that will avoid iPhones suddenly being banned from DoD installations or similar restrictions.
In a couple of ways, SK Hynix almost has to go the HBM route. Not only is this their key profit center, it's also a way for them to stay ahead of the competition that we don't hear that much about: the Chinese DRAM and NAND producers, lead by CXMT and YMTC, respectively. Both are expanding their capacities at breakneck speed, both do so with the strong encouragement from Beijing, and have no reason to stop growing. Apple essentially asking the Trump administration for permission to source some of their DRAM from CXMT* (the FT reported on this) is IMHO a glimpse of things to come in the next 12 - 18 months. Korean companies learned the hard way what happens when Chinese competitors move into a sector that was previously theirs - shipbuilding comes to mind.
*While Apple technically doesn't need such a permit, CXMT is, due to its history and ties to the People's Army, on the naughty list of the Pentagon, so Apple asking for a hall pass was and is politically a smart move that will avoid iPhones suddenly being banned from DoD installations or similar restrictions.
I agree with this analysis 100%.
The LCD sector is a grave lesson for DRAM players. SKH’s tight relationship with TSMC is a strategic advantage