The author is an analyst for NH Investment & Securities. He can be reached at youngryu@nhqv.com -- Ed.
Micron begins mass production of HBM3E
Micron has kicked off full-scale production of HBM3E (24GB 8-high) to be used for Nvidia’s H200, which is scheduled to be shipped from 2Q24. The company has also begun sampling of a 36GB 12-high product. Micron plans to unveil its AI memory portfolio and roadmap at Nvidia’s GTC 2024 in March. Although Micron’s yield for HBM3E is not yet known, and its production capacity is significantly lower than that of competitors, the firm’s stock price closed 4% up on the day, backed by its faster-than-expected entering of the market.
AMD prepares upgraded version of MI300 series
According to AMD CEO Mark Papermaster, in addition to MI300A (HBM3 128GB) and MI300X (HBM3 192GB), AMD is set to introduce HBM3E. Boasting higher bandwidth through memory upgrades, the new product should lead to improved chip performance. Nvidia has already unveiled its H200, a chip with strengthened performance achieved via upgraded memory. We forecast that demand for HBM will continue to increase.
With HBM competition in full swing, production yield is crucial
HBM competition is heating up among three chipmakers, with eyes on HBM amid weak demand for general memory products. But, demand for general memory should also increase due to the rise in memory load per unit stemming from AI development. As chipmakers cannot indefinitely expand HBM production capacity, the key will be efficient production under limited capacity.