[News] Over $6.67 Billion Wafer Plant Breaks Ground as HBM Market Heats Up

Recently, SK Hynix announced the full-scale commencement of construction on the first wafer plant within its Yongin Semiconductor Cluster, with completion expected in May 2027.

In July 2024, the SK Hynix board of directors approved an investment of approximately 9.4 trillion KRW (about $6.67 billion) to build the first wafer plant and business facilities within the Yongin Semiconductor Cluster. The approved investment includes costs for the initial phase of the cluster, covering the construction of the first plant, auxiliary facilities (such as water treatment, power substations, communication lines, and warehouses), business support buildings, and welfare facilities.

Additionally, SK hynix plans to establish a “mini fab” within the first wafer plant. This facility, equipped with 300mm wafer processing equipment, will serve as a research hub for validating semiconductor materials, components, and equipment, supporting the technological development and evaluation efforts of domestic Korean SMEs.

Once completed, this plant will serve as SK Hynix’s production hub for next-generation DRAM memory chips, including High Bandwidth Memory (HBM), and will help boost AI-oriented memory production. Over time, SK Hynix will complete the construction of three additional wafer plants, aiming to develop the Yongin cluster into a “global AI semiconductor production base.”

Notably, SK Hynix also plans to invest approximately 5.3 trillion KRW (about $3.76 billion) in Cheongju to build the M15X plant, aimed at enhancing production capacity for next-generation DRAM, including its flagship HBM products.

SK Hynix Expands HBM3e Supply and Prepares for HBM4 Development

According to the latest research from market intelligence firm TrendForce, SK hynix’s global DRAM market share increased from 34.4% in Q3 2024 to 36.6% in Q4 2024, thanks to strong shipments of HBM3e, bringing it closer to Samsung.

In SK hynix’s January 2024 financial report, the company revealed that rising sales of AI-oriented memory products such as HBM and eSSD helped drive record-breaking quarterly and annual revenue and operating profits. Notably, in Q4 2024, HBM accounted for more than 40% of SK Hynix’s overall DRAM sales revenue.

Currently, SK Hynix has begun supplying its latest 12-layer HBM3e chips and is developing a 16-high (16hi) HBM3e product, with each chip offering 48GB of capacity. Sampling is expected in the first half of 2025. According to TrendForce, potential applications for SK Hynix’s new products include custom ASICs developed by CSPs and general-purpose GPUs. These advancements could push memory density limits ahead of the mass production of HBM4.

TrendForce also notes that since both HBM4 and HBM4e generations are expected to feature 16hi designs, SK hynix’s early mass production of HBM3e 16hi will provide valuable experience for accelerating the HBM4 16hi production timeline.

SK hynix confirmed in its financial report that it plans to expand HBM3e supply this year while developing HBM4 at the appropriate time.

Samsung to Supply Enhanced HBM3e and Begin Mass Production of HBM4 in H2 2025

At the end of January 2025, Samsung Electronics released its latest financial report, showing that its 2024 revenue reached 300.9 trillion KRW, a 16% YoY increase, while operating profit surged 395% to 32.7 trillion KRW. Net profit also grew 131% YoY to 33.6 trillion KRW.

Samsung stated that its memory business achieved record-breaking Q4 revenue, driven by rising sales of HBM and high-density DDR5 for servers, leading to an increase in blended DRAM ASP (average selling price).

According to South Korean media reports, Samsung announced in a recent earnings call that it expects to supply an enhanced version of its fifth-generation HBM product, HBM3e, to key customers by the end of Q1 2025. Furthermore, Samsung plans to commence mass production of sixth-generation HBM4 in the second half of 2025.

Samsung revealed that its Q4 2024 HBM sales grew by 1.9 times compared to the previous quarter. Following its Q3 2024 mass production of 8-layer and 12-layer HBM3e, Samsung expanded HBM3e supply to multiple GPU vendors and data center clients in Q4, resulting in HBM3e sales surpassing those of HBM3.

Additionally, Samsung expects to significantly increase shipments of the enhanced HBM3e starting in Q2 2025. This will help Samsung double its total HBM bit supply in 2025 compared to 2024, reinforcing its commitment to meeting evolving customer demands.

Micron’s Strong HBM Performance, HBM4 Mass Production Expected in 2026

At the end of 2024, Micron reported its Q1 FY2025 earnings, posting revenue of $8.709 billion, an 84.28% YoY increase, with net profit reaching $1.87 billion, up 251.54% YoY. The company’s data center business saw revenue grow by more than 400% YoY.

Micron highlighted that data centers were the primary growth driver for the quarter, helping the company achieve record revenue. Additionally, HBM revenue more than doubled sequentially, with its HBM3e products designed into NVIDIA’s Blackwell platform.

During the earnings call, Micron’s management emphasized the strong momentum in HBM shipments and revenue, noting smooth progress in production ramp-up.

Looking ahead, HBM is expected to sustain robust growth for years to come. Micron executives predict that the global HBM market could surpass $100 billion by 2030. CEO Sanjay Mehrotra expressed confidence in Micron’s roadmap for HBM development in the coming years.

According to the latest report from TechNews, Micron’s 1-beta DRAM for HBM3e will continue to ramp up in 2025, while next-generation HBM4 is slated for mass production in 2026. Mark Murphy, Micron’s Executive Vice President and CFO, revealed that the company’s 12-high stacked HBM memory (12Hi HBM3e) is set to enter large-scale production soon.

Murphy reaffirmed Micron’s goal of achieving a market share in HBM comparable to its overall DRAM market share (approximately 20%).

Additionally, Micron has officially begun construction of its advanced HBM packaging facility in Singapore. This plant, with a total investment of $7 billion, is expected to begin operations in 2026, marking Singapore’s first semiconductor assembly and testing facility.

(Photo credit: SK hynix)