SK Hynix Profit Soars 406%, TSMC Builds Arizona Packaging, Nvidia’s H200 China Sales Stall
SK Hynix posted a 406% jump in Q1 operating profit to 37.6 trillion won on AI memory chip demand. TSMC is building CoWoS and 3D-IC facilities in Arizona by 2029 to relieve Nvidia’s bottleneck, while H200 chips haven’t sold in China due to trade friction and 25% fees.
1. SK Hynix Q1 Memory Chip Surge
SK Hynix, a key Nvidia memory supplier, reported operating profit of 37.6 trillion won in Q1, up 406% year-over-year, driven by strong demand for both advanced and conventional AI memory products. This performance matched analyst forecasts and underscores the critical role of high-bandwidth memory in supporting Nvidia’s GPU deployments.
2. TSMC Arizona Advanced Packaging Expansion
TSMC has started construction on CoWoS and 3D-IC advanced packaging facilities in its Arizona site, targeting operational capacity by 2029. This expansion aims to address Nvidia’s growing need for chiplet integration, reducing reliance on overseas packaging and alleviating current supply chain bottlenecks.
3. Nvidia’s H200 China Sales Hold Up
Despite approvals and purchase orders, no Nvidia H200 AI accelerator chips have been shipped into China as of April due to ongoing US-China trade frictions and an effective 25% export fee. These barriers have stalled what could be a significant revenue stream for Nvidia in the world’s second-largest AI market.