SEOUL (Reuters) - SK Hynix Inc said on Tuesday it has begun mass production of next-generation high-bandwidth memory (HBM) chips used in artificial intelligence chipsets, with sources saying initial shipments will go to Nvidia this month.

The new type of chip - called the HBM3E - is a focal point of intense competition. Last month, Micron Technology said it had started mass production of the chips while Samsung Electronics said it had developed the industry's first 12-stack HBM3E chips.

SK Hynix has, however, led the HBM chip market by virtue of being the sole supplier of the version currently used - the HBM3 - to Nvidia which has 80% of the market for AI chips.

"The company expects successful mass production of HBM3E and with our experience... as the industry's first provider of HBM3, we expect to cement our leadership in the AI memory space," SK Hynix said in a statement.

The new HBM3E chip by the world's second-largest memory chipmaker offers 10% improvement in heat dissipation and processes up to 1.18 terabytes of data per second.

SK Hynix's HBM capacity is fully booked for 2024, analysts said, as explosive demand for AI chipsets drives up demand for high-end memory chips used in them.