According to a report from Commercial Times, SK Hynix, Samsung, and Micron, the world’s top three memory manufacturers, are actively investing in high-bandwidth memory (HBM) capacity expansion plans. Industry sources cited by the same report estimate that by 2025, the additional production will reach approximately 276,000 units, bringing the total capacity to 540,000 units, an annual increase of 105%.

Regarding the latest developments in HBM, TrendForce indicates that HBM3e will become the market mainstream this year, with shipments concentrated in the second half of the year.

Currently, SK Hynix remains the primary supplier for HBM, along with Micron, both utilizing 1beta nm processes and already shipping to NVIDIA. Samsung, using a 1alpha nm process, is expected to complete qualification in the second quarter and begin deliveries mid-year.

Regarding major memory players’ expansion plans on HBM, Samsung is gradually upgrading its Pyeongtaek facilities (P1L, P2L, and P3L) in South Korea to be used for DDR5 and HBM. Meanwhile, the Hwaseong facilities (Line 13, 15, and 17) are being upgraded to the 1α process, retaining only a small portion of capacity at the 1y/1z process to meet the demands of specialized industries such as aerospace.

SK Hynix produces HBM at its M16 production line in Icheon, South Korea, and is upgrading its M14 production line to the 1α/1β process to supply DDR5 and HBM products. Additionally, after receiving clearance from the U.S. government, its Wuxi plant in China is actively upgrading from the 1y/1z process to the 1z/1α process for producing DDR4 and DDR5 products.

Micron’s HBM production is conducted at its Hiroshima plant in Japan, with capacity expected to increase to 25,000 units in the fourth quarter of this year. In the long term, Micron plans to introduce EUV processes (1γ, 1δ) and build a new cleanroom.

In the short term, Micron will utilize its production capacities at the Linkou and Taichung plants in Taiwan, increasing the proportion of 1β process. By the end of 2025, the total production for HBM is expected to reach around 60,000 units.

According to Commercial Times, the HBM production volume of the world’s top three manufacturers will maintain high growth for two consecutive years, with the global total wafer production volume expected to reach approximately 540,000 units per month by the end of 2025.

Read more

• [News] Samsung Establishes New HBM Team to Advance HBM3, HBM3e and HBM4 Development
• HBM3e Production Surge Expected to Make Up 35% of Advanced Process Wafer Input by End of 2024, Says TrendForce

(Photo credit: SK Hynix)

As the demand for AI chips surges, orders for thermal compression (TC) bonders, which play a critical role in HBM (high-bandwidth memory) manufacturing, are also heating up.

To further gain market momentum, South Korean chip packaging equipment manufacturer Hanmi Semiconductor plans to launch 2.5D big die TC bonder models in the second half of 2024, while increasing its annual sales target for this year to 650 billion won (USD 471 million), according to the latest report by the Korea Economic Daily.

Citing Kwak Dong-shin, vice chairman and CEO of Hanmi Semiconductor, the report notes that the company eyes strong revenue growth in the next two years, projecting 1.2 trillion won (USD 870 million) in sales for 2025, and 2 trillion won (USD 1.45 billion) for 2026.

TC bonders play a pivotal role in HBM production by employing thermal compression to bond and stack chips on processed wafers, thereby significantly influencing HBM yield. According to the report, Hanmi plans to introduce several upgraded models in the next two years, including 2.5D big die TC bonders in the second half of this year, mild hybrid bonders in the latter half of 2025, and hybrid bonders in 2026.

Memory giants have developed their own ecosystems to secure TC bonders’ supply. The report notes that Hanmi has been providing its TC bonders to SK hynix, while the latter is a major HBM supplier to Nvidia. In addition, the company also entered into a 22.6 billion won agreement with Micron in April.

Whether in the near future, Hanmi Semicodutor would be able to finalize similar contracts with Samsung, another memory heavyweight, remains to be seen. For now, Samsung sources its equipment from Japan’s Toray and Sinkawa, as well as its subsidiary SEMES.

Hanmi Semiconductor produces TC bonders at its six factories located in Incheon, where its headquarters are situated. The report indicates that it aims to increase the capacity of its newest, the sixth factory from 264 units of TC bonders annually this year to 420 units next year, which makes it the largest annual capacity for TC bonder producers worldwide.

Read more

• [News] Rising HBM Production by Samsung and SK Hynix Energizes Korea’s TC Bonder Industry
• [News] ASMPT Reportedly Provided Demo TC Bonder to Micron for HBM Production

(Photo credit: Hanmi Semicondutor)

Unlike other major semiconductor manufacturers, including Intel and TSMC, memory giant Micron is not in a hurry to adopt EUV (extreme ultraviolet) lithography for its DRAM production. However, according to a latest report from Technews, in 2024, Micron plans to begin trial production using EUV on its 1γ (1-gamma) process technology at 10-nm level.

The report also notes that currently, all of the company’s mass-produced products are made using DUV (deep ultraviolet) lithography. However, after entering trial production in 2024 with EUV, Micron also anticipates that this process technology will enter large-scale production in 2025.

Another Korean memory giant, Samsung, announced in 2020 that it has successfully shipped one million of the industry’s first 10nm-class (D1x) DDR4 (Double Date Rate 4) DRAM modules based on EUV technology.

In 2021, SK hynix has started mass production of its 10-nm DRAM chips using EUV technology, and is said to invest USD 1.5 billion this year to acquire 8 advanced EUV lithography machines, according to an earlier report from Disc Manufacturer.

Previously, Micron CEO Sanjay Mehrotra stated during an earnings call that the trial production of 10-nm-class 1γ (1-gamma) process DRAM using EUV lithography is progressing well, and they are on track to achieve mass production by 2025 as planned. Currently, Micron is developing the 10-nanometer-class 1γ process DRAM manufacturing technology using EUV lithography at its Hiroshima plant in Japan, which is also the first site for the trial production of 1γ memory, according to Technews.

In order to meet the strong demand for high-performance memory chips driven by AI, Micron is reportedly building a pilot production line for HBM in the U.S. and is considering producing HBM in Malaysia for the first time.

Read more

• [News] Micron’s HBM Expansion at Full Throttle: Rumored to Expand in US, Malaysia Also an Option
• [News] HBM Supply Shortage Prompts Micron’s Expansion, Expected Schedule in Japan and Taiwan Revealed

(Photo credit: ASML)

Thanks to the rebound in memory chip demand amid accelerated global AI development, Samsung Electronics reported its strongest sales and profit growth in years. According to its financial guidance announced on July 5th, the semiconductor giant projects its operating profit to grow more than 15-fold YoY to 10.4 trillion won (USD 7.5 billion) in its preliminary results for the April-June quarter, outstripping market expectations.

In addition, the company expects its sales to increase by approximately 23% to 74 trillion won. According to a report from Bloomberg, this marks the largest rise since the peak levels seen during the Covid-19 pandemic in 2021.

The forecast is way better than LSEG SmartEstimate’s earlier forecast, which expected Samsung Electronics’ operating profit for Q2 2024 to reach 8.8 trillion won (roughly USD 6.34 billion).

Samsung is scheduled to release final earnings, including divisional breakdowns, on July 31.

It is also worth noting that Samsung is releasing its results just days ahead of planned three-day walkouts by union organizers, starting from July 8th. According to Bloomberg, the move would involve over 28,000 members, including those at crucial chip plants, due to a wage dispute. The extent of participation in Monday’s walkout remains uncertain at this time.

Citing market sources, the report noted that Samsung’s Q2 financial results highlight the memory market’s robust recovery this year from a sharp decline post-Covid, driven by increased demand from data centers and AI development, which contributes to a turnaround in Samsung’s largest division, which had incurred losses the previous year.

According to TrendForce, Samsung’s global share of DRAM and NAND Flash output in 2023 was 46.8% and 32.4%, respectively. An earlier report by the Korea Economic Daily indicated that Samsung’s HBM production has been sold out in 2024.

According to the latest forecast by Trendforce, the HBM market is poised for robust growth, driven by significant pricing premiums and increased capacity needs for AI chips. HBM prices are expected to Increase by 5–10% in 2025.

Read more

• [News] Samsung Establishes New HBM Team to Advance HBM3, HBM3e and HBM4 Development
• Samsung Strike Has No Immediate Impact on Memory Production, with No Shipment Shortages, Says TrendForce

(Photo credit: Samsung)

In order to address the growing demand for high-performance memory solutions fueled by the expansion of the artificial intelligence (AI) market, Samsung Electronics has formed a new “HBM Development Team” within its Device Solutions (DS) Division to enhance its competitive edge in high-bandwidth memory (HBM), according to the latest report from Business Korea. The new team will concentrate on advancing the progress on HBM3, HBM3e, and the next-generation HBM4 technologies, the report noted.

This initiative comes shortly after the Korean memory giant changed its semiconductor business leader in May. Citing industry sources, the report stated that Samsung’s DS Division carried out an organizational restructuring centered on the establishment of the HBM Development Team.

Also, the move attracts attention as on July 4th, a report from Korea media outlet Newdaily indicated that Samsung has finally obtained approval from NVIDIA for qualification of its 5th generation HBM, HBM3e, though the company denied the market rumor afterwards.

Samsung has a long history of dedicating to HBM development. Since 2015, it has maintained an HBM development organization within its Memory Business Division. Earlier this year, the tech heavyweight also created a task force (TF) to boost its HBM competitiveness, and the new team will unify and enhance these ongoing efforts, the report noted.

According to the report, Samsung reached a significant milestone in February by developing the industry’s first HBM3e 12-layer stack, which offers the industry’s largest capacity of 36 gigabytes (GB). Samples of the HBM3e 8-layer and 12-layer stacks have already been sent to NVIDIA for quality testing.

Regarding the latest development, TrendForce reports that Samsung is still collaborating with NVIDIA and other major customers on the qualifications for both 8-hi and 12-hi HBM3e products. Samsung anticipates that its HBM3e qualification will be partially completed by the end of 3Q24.

According to TrendForce’s latest analysis on the HBM market, HBM production will be prioritized due to its profitability and increasing demand. However, limited yields of around 50–60% and a wafer area 60% larger than DRAM products mean a higher proportion of wafer input is required. Based on the TSV capacity of each company, HBM is expected to account for 35% of advanced process wafer input by the end of this year, with the remaining wafer capacity used for LPDDR5(X) and DDR5 products.

Read more

• [News] Samsung’s HBM3e Reportedly Passed NVIDIA’s Certification Though It Denies the Rumor
• HBM3e Production Surge Expected to Make Up 35% of Advanced Process Wafer Input by End of 2024, Says TrendForce

(Photo credit: Samsung)