NVIDIA's next-generation AI server rack faced a production setback as semiconductor analysis firm SemiAnalysis reported the Khyber NVL144 launch would be delayed to 2028, over 12 months behind the original schedule. The delay stems from difficulties in mass-producing multilayer printed circuit boards (PCBs), a core component of the rack, with GPU interconnect technology (NVSwitch) optical connections also remaining incomplete. Asian semiconductor stocks with NVIDIA as a major client, including Japan's Ibiden and Hong Kong's Kingboard Laminates Holdings, fell over 10% intraday following the report.
Asian Semiconductor Stocks Fall Over 10% on NVIDIA Production Delay
SemiAnalysis identified multilayer PCB mass production as technically challenging under current capabilities for the Khyber NVL144 AI server rack. The report noted that ultra-high-speed interconnect devices between GPUs using optical communication connections have not been completed. Bloomberg assessed the report as increasing uncertainty around NVIDIA's next-generation roadmap. Asian semiconductor suppliers serving NVIDIA as their largest client experienced significant intraday declines, with Japan's Ibiden and Hong Kong's Kingboard Laminates Holdings both dropping over 10%.
SK Hynix Invests 870 Billion Won in Trinity Fab for May Opening
SK Hynix is constructing the Trinity Fab at the Yongin semiconductor cluster with a total investment of 870 billion won from the government and the company, targeting a May opening next year. The facility expands the role of the Icheon Technology Analysis and Measurement Support Center to an actual production environment, serving as a testbed. The project supports 300mm wafer-based real process verification, enabling direct validation of materials, components, and equipment (MCE) partner products' mass production reliability. The existing Icheon center has supported over 20,000 partner sample analyses annually. Semiconductor equipment company TES resolved wafer surface micro-contamination issues through the center's analytical support. An SK Hynix representative stated the Trinity Fab will enable MCE companies to shorten development periods and achieve earlier market entry.
Korean AI Stocks Decline 30-50% One Month After Jensen Huang Visit
Korean AI-beneficiary stocks that surged following NVIDIA CEO Jensen Huang's Korea visit experienced sharp corrections within one month. LG Electronics rose to 392,500 won on the 2nd of last month but closed at 185,700 won, falling 52.7% from its peak. Doosan Robotics declined 50.5% from 166,700 won to 82,500 won. Naver and Hyundai Motor fell approximately 30% and 33% respectively, with profit-taking sales following the front-loading of collaboration expectations. Securities industry analysis indicates Naver and Hyundai Motor's target price consensus exceeds current stock prices, suggesting upside potential, while LG Electronics faces a conservative outlook with its consensus below the current price.
SK Hynix Schedules NASDAQ ADR Listing with $28.1 Billion Valuation
SK Hynix will list its American Depositary Receipts (ADR) on NASDAQ on the 10th with a valuation of $28.1 billion (43.14 trillion won), surpassing Alibaba and Aramco as the largest-ever ADR listing. Market expectations suggest SK Hynix could achieve valuation levels comparable to Micron following the ADR listing. SK Hynix's 2026 forward price-to-earnings ratio (PER) currently stands at 7.42 times, lower than Micron's 9.44 times. However, analysts caution that Taiwan's TSMC frequently experiences price discrepancies exceeding 10% between ADR and domestic shares, suggesting valuation may not immediately rise. The Korean market is assessed as more open than Taiwan's, with structural liquidity alternatives such as the foreign integrated account system already in place.
FAQ
Why was NVIDIA's AI server rack delayed to 2028?
SemiAnalysis reported that mass production of multilayer printed circuit boards (PCBs), a core component of the Khyber NVL144 rack, is technically challenging under current capabilities. Additionally, ultra-high-speed GPU interconnect technology using optical communication connections has not been completed.
How much is SK Hynix investing in the Trinity Fab project?
SK Hynix is investing a total of 870 billion won in the Trinity Fab at the Yongin semiconductor cluster, with funding from both the government and the company. The facility targets a May opening next year and will support 300mm wafer-based real process verification for materials, components, and equipment partner companies.
