High-density memory market through HBM (Hybrid Memory Cube) technology expected to reach trillions in value by 2030, reports AI-driven memory industry predicts exponential expansion of around 30% per year during the next five years.
The global market for High Bandwidth Memory (HBM) chips, a crucial component in artificial intelligence (AI) data centres, is expected to grow by around 30% annually until 2030, according to industry forecasts. This growth could see the market size reach between $98 billion and $130 billion by the end of the decade, primarily driven by AI adoption and increasing demand from major cloud computing companies.
Key factors fueling this growth include the rapid adoption of AI systems, which require large bandwidth and efficient memory to handle complex workloads. HBM, with its high data transfer speeds and low latency through vertical stacking of memory dies, is well-positioned to meet this demand.
Major cloud computing giants like Amazon, Microsoft, and Google are also expected to continue raising capital expenditures on AI infrastructure, directly boosting HBM chip demand. The shift towards customized designs, where customers favor bespoke HBM chips tailored to specific AI models or workloads, is another significant driver. This trend improves performance and efficiency and reduces competition primarily based on price.
Technological advancements, such as developments in packaging and the upcoming HBM4 generation with customizable "base dies," also contribute to the market's robust growth. These advancements enable better tuning for power and throughput, creating stronger client dependency and supporting higher margins for manufacturers like SK Hynix.
SK Hynix, a South Korean giant and the largest shareholder of the HBM market, shares this forecast with Reuters. The company is well-positioned due to its focus on customization and packaging, leaving it in a strong position if AI demand continues its upward march.
The market for custom HBM alone could be worth tens of billions of dollars by 2030. Other key players in the market include Samsung and Micron, both of which are scaling up their HBM footprint. Samsung has cautioned that HBM3E supply may briefly outpace demand, which could pressure prices in the short term.
SK Hynix is taking steps to secure its position in the market. The company is building an advanced packaging plant and AI R&D hub in Indiana, and it is also exploring alternatives like High Bandwidth Flash (HBF).
However, potential challenges to the HBM market's growth include oversupply, customer concentration, or disruptive memory technologies. Notably, U.S. President Donald Trump has announced a 100% tariff on chips imported from countries without U.S.-based manufacturing, which could impact the market dynamics.
For up-to-date news, analysis, and reviews on the HBM market and related technologies, users can follow Tom's Hardware on Google News. The future of the HBM market looks promising, with its continued growth set to be a key factor in the development of AI and high-end computing.
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