Samsung Electronics and SK hynix are expected to have a production capacity of over 100,000 High Bandwidth Memory (HBM) units by the end of this year. The two companies are set to ramp up their HBM production more aggressively than the previous year, signaling a fiercer market competition.
According to market research firm TrendForce, Samsung Electronics plans to embark on the production of approximately 130,000 HBM units by the end of the year. This marks a 2.8-fold increase from the end of last year when the production capacity stood at 45,000 units.
Similarly, SK hynix aims to achieve a production capacity of 120,000 to 125,000 HBM units by year end, more than 2.7 times the production volume compared to the end of last year, which was 45,000 units.
Consequently, the HBM production capabilities of both companies are projected to be about 6 to 6.5 times greater than their competitor, Micron, in the United States. Micron’s production capacity is expected to increase from 3,000 units at the end of last year to 20,000 units.
TrendForce commented, “Significant capital investment has been made in the memory sector due to HBM’s high average selling price and profitability. The annual bit growth of HBM, which measures the increase in shipments per bit, is expected to reach 260% this year.”
The firm also predicts a rapid increase in HBM’s market share within the global DRAM market. The market share of HBM has grown from 2.6% in 2022 to 8.4% last year and is expected to grow further to 20.1% by the end of this year. Additionally, the annual bit growth is anticipated to reach 260%, indicating a significant expansion in HBM production this year. Bit growth refers to the rate of increase in semiconductor production volume when measured in bits.
As a result, DRAM market revenue is expected to surge from US$80.87 billion in 2022 and US$51.863 billion in 2023 to US$84.15 billion this year. During the same period, HBM revenue is projected to increase nearly fourfold from US$2.08226 billion and US$4.35649 billion to US$16.91415 billion this year, compared to last year.