With the rapid development of artificial intelligence (AI) technology, the demand for high-performance computing is growing, especially in the field of AI servers and high-performance computing (HPC), the performance requirements for memory are becoming higher and higher. HBM (High Bandwidth Memory), a breakthrough semiconductor storage technology, due to its extremely high bandwidth and capacity, is becoming the focus of memory chip competition in the AI era.
Currently, the global HBM market is dominated by three giant companies: SK Hynix, Samsung Electronics and Micron Technology. These three companies have captured almost the entire share of the HBM market through technological innovation and capacity expansion.SK Hynix leads the market with about 50% market share, while Samsung Electronics and Micron Technology follow with 40% and 10% market share, respectively. Competition in this market is expected to intensify as the demand for HBMs continues to grow with the advancement of AI technology.
The training of AI and machine learning algorithms requires the processing and storage of massive amounts of data, which places higher demands on the bandwidth and speed of the memory. HBM memories, with their high bandwidth, high speed, and low power consumption, have become the ideal memory solution for AI servers. According to market research firms, the global HBM market size will reach $12.74 billion by 2026, corresponding to a CAGR of 37%.
In order to meet the high-performance demand for memory in the AI era, memory manufacturers have made a series of innovations in HBM technology. SK Hynix has successfully developed the world's first HBM3 and plans to start mass production of HBM3E in 2024, while targeting production of HBM4 in 2026. Samsung Electronics has also made a breakthrough in the development of HBM3E and plans to mass-produce HBM4 in 2025.Micron Technology, on the other hand, through technological innovations, plans to catch up with the world through HBM3E in 2024 and launch higher-capacity HBM products between 2026 and 2027.
Despite manufacturers expanding HBM capacity, the HBM market continues to face an oversupply due to the surge in AI arithmetic demand. This supply-demand relationship is driving the price of HBMs and is also prompting manufacturers to increase R&D and investments with a view to meet market demand through technological innovations.
Against the backdrop of fierce competition in the international market, Chinese companies are also actively exploring and developing HBM technology. With the rapid development of AI technology in China and the growing demand for high-performance memory, the R&D and production of domestic HBM is expected to make breakthroughs driven by the big wave of AI and enhance the market competitiveness of domestic enterprises.
The rapid growth of the HBM market brings opportunities for the entire industrial chain. From material supply, equipment manufacturing to packaging and testing, each link is facing a huge market demand. However, this also brings challenges, especially in the field of high-end materials and advanced equipment, and domestic enterprises need to strengthen their technological R&D and innovation to meet the market demand for high-performance HBM products.
Looking ahead, the HBM market is expected to continue to grow rapidly as AI technology continues to advance and application areas expand. Manufacturers will need to continue to make technological innovations and capacity expansions to cope with future market demand. Meanwhile, domestic companies should also seize the opportunity to accelerate the R&D and industrialization of HBM technology to enhance their competitiveness in the global market.
The HBM memory market is characterized by both technological innovation and market expansion in the fierce competition in the AI era. With the continuous progress of technology and expanding market demand, the HBM market will bring new growth opportunities for the entire semiconductor industry. For companies involved in it, how to stay ahead in technological innovation and market competition will be an important issue for them.
