Demand for HBM products soared 500%, Prices hit all-time highs

In recent years, the demand for high-bandwidth memory has surged, a trend that has become increasingly pronounced with the advent of the artificial intelligence (AI) boom, leading to a significant rise in HBM product sales. Concurrently, industry giants such as Samsung, SK Hynix, and Micron are intensifying their efforts to develop new products, particularly next-generation technologies like HBM4, to capture high-value markets and enhance corporate performance.

Despite a sluggish storage semiconductor market last year, the demand for high-value products like HBM3 soared, offsetting losses from other memory products. According to media reports, HBM products are witnessing a substantial economic rebound in the storage semiconductor industry. With companies like NVIDIA and AMD ramping up production of AI accelerators, market demand has skyrocketed by 500%, and prices have reached historic highs. This trend appears unlikely to abate in the short term, with rapid market development anticipated soon.

Currently, SK Hynix and Samsung dominate the market, jointly holding over 90% of the market share. Recent reports indicate that SK Hynix has formulated a “One Team” strategic alliance with TSMC, planning to collaborate on the development of HBM4 chips. TSMC is expected to handle the packaging and testing aspects, enhancing product compatibility.

According to market research reports, the HBM market is expected to grow at a compound annual growth rate of 45% over the next five years, signifying substantial revenue growth. The optimistic market outlook also raises expectations for memory manufacturers, and with the addition of artificial intelligence, the HBM product market is poised to reach new heights.