The big four of AI infrastructure
The four companies that currently dominate AI infrastructure are.
ASML
TSMC
SK Hynix
NVIDIA
All these four companies are interconnected and interdependent.
Let’s start with ASML. It produces extreme ultraviolet lithography equipment to make the most advanced semiconductors. It sells its products to TSMC, Intel and SK Hynix. It has a 100% market share.
TSMC produces the world’s most advanced semiconductors, including chips for NVIDIA and Apple. It produces the semiconductors using ASML equipment. Over the years, it has overshadowed companies such as Intel and Samsung in chip manufacturing. It has a 95% market share.
SK Hynix produces most of the world’s high-bandwidth memory 3E chips. These chips help in storing and moving data at high speeds. It sells it products to companies such as NVIDIA. It has a 80% market share.
NVIDIA produces AI accelerators. It sends its semiconductor designs to TSMC, which uses AMSL machines to manufacture the chips. NVIDIA combines the TSMC semiconductors and SK Hynix in a package to create the AI accelerators. It has a 92% market share.
In the last five years, all these companies have grown in size and increased their market share significantly. This is reflected in their share price. NVIDIA’s growth is exceptional, particularly due to its AI focussed chips.
