Currently, the top three leaders—Samsung, SK Hynix, and Micron—in the HBM sector are undergoing unprecedented expansion. Below is an overview of the progress made by each of these giants in the realm of HBM:

• Samsung: HBM Production to Increase 2.5 Times in 2024, Another 2 Times in 2025

Samsung Electronics has begun expanding its HBM3 supply since the fourth quarter of 2023. Prior to this, internal messages within Samsung during the fourth quarter of 2023 indicated that samples of the next-generation HBM3e with an 8-layer stack had been provided to customers, with plans for mass production to commence in the first half of this year.

Han Jin-man, Executive Vice President in charge of Samsung’s semiconductor business in the United States, stated at CES 2024 this year that Samsung’s HBM chip production volume will increase 2.5 times compared to last year and is projected to double again next year.

Samsung officials also revealed that the company plans to increase the maximum production of HBM to 150,000 to 170,000 units per month before the fourth quarter of this year in a bid to compete for the HBM market in 2024.

Previously, Samsung Electronics spent KRW 10.5 billion to acquire the plant and equipment of Samsung Display located in Tianan City, South Korea, to expand HBM capacity. They also plan to invest KRW 700 billion to 1 trillion in building new packaging lines.

• SK Hynix: To Commence Mass Production of World’s First Fifth-Generation High-Bandwidth Memory HBM3e in March

According to the latest report from Korean media Moneytoday on February 20th, SK Hynix will commence mass production of the world’s first fifth-generation high-bandwidth memory, HBM3e, in March this year. The company plans to supply the first batch of products to NVIDIA within the next month.

However, SK hynix noted that it “cannot confirm any details related to its partner.”

In its financial report, SK Hynix indicated plans to increase capital expenditure in 2024, with a focus on high-end storage products such as HBM. The HBM production capacity is expected to more than double compared to last year.

Previously, SK Hynix forecasted that by 2030, its HBM shipments would reach 100 million units annually. As a result, the company has decided to allocate approximately KRW 10 trillion (approximately USD 7.6 billion) in CAPEX for 2024. This represents a significant increase compared to the projected CAPEX of KRW 6 to 7 trillion in 2023, with an increase ranging from 43% to 67%.

The focus of the expansion is on constructing and expanding factories. In June of last year, Korean media reported that SK Hynix was preparing to invest in backend process equipment to expand its HBM3 packaging capabilities at its Icheon plant. By the end of this year, it is expected that the scale of backend process equipment at this plant will nearly double.

Furthermore, SK Hynix is also set to construct a state-of-the-art manufacturing facility in Indiana, USA. According to the Financial Times, this South Korean chip manufacturer will produce HBM stacks at this facility, which will be used for NVIDIA GPUs produced by TSMC.

• Micron: Continuing the Pursuit, Betting on HBM4

Micron holds a relatively low share in the global HBM market. In order to narrow this gap, Micron has placed a significant bet on its next-generation product, HBM3e.

Sanjay Mehrotra, CEO of Micron, stated, ” Micron is in the final stages of qualifying our industry-leading HBM3e to be used in NVIDIA’s next-generation Grace Hopper GH200 and H200 platforms.”

Micron plans to begin mass shipments of HBM3e memory in early 2024. Mehrotra emphasized that their new product has garnered significant interest across the industry, implying that NVIDIA may not be the sole customer ultimately utilizing Micron’s HBM3e.

In this competition where there is no first-mover advantage, Micron seems to be betting on the yet-to-be-determined standard of the next-generation HBM4. Official announcements reveal that Micron has disclosed its next-generation HBM memory, tentatively named HBM Next. It is expected that HBM Next will offer capacities of 36GB and 64GB, available in various configurations.

Unlike Samsung and SK Hynix, Micron does not intend to integrate HBM and logic chips into a single chip. In the development of the next-generation HBM, the Korean and American memory manufacturers have distinct strategies.

Micron may address AMD, Intel, and NVIDIA that faster memory access speeds can be achieved through combination chips like HBM-GPU. However, relying solely on a single chip means greater risk.

As per TrendForce, HBM4 is planned to be launched in 2026. It is expected that specifications and performance, including those for NVIDIA and other CSP (Cloud Service Providers) in future product applications, will be further optimized.

With specifications evolving towards higher speeds, it will be the first time that the base die of HBM, also known as the Logic die, will adopt a 12nm process wafer. This part will be provided by foundries, necessitating collaboration between foundries and memory manufacturers for single HBM product integration.

Furthermore, as customer demands for computational efficiency increase, HBM4 is expected to evolve beyond the existing 12hi (12-layer) stack to 16hi (16-layer) configurations. The anticipation of higher layer counts is also expected to drive demand for new stacking methods such as hybrid bonding. HBM4 12hi products are slated for release in 2026, while 16hi products are expected to debut in 2027.

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• [News] SK Hynix Signs Prioritized Supply Agreement with NVIDIA for HBM3e, 2023 Q4 Revenue Expected to Surpass KRW 10 Trillion Again
• [News] H200 Unveiled: NVIDIA Integrates HBM3e for Enhanced AI Performance

(Photo credit: Samsung)

A glimmer of hope for the once-failed engagement between NAND flash memory giants Kioxia and Western Digital (WD) may emerge again. According to a report from Japanese media Asahi News, the two parties may restart merger negotiations in late April.

 It’s reported on February 23rd that Kioxia and WD are expected to resume merger talks in late April. Although their merger negotiations hit a snag last fall, both companies are facing pressure to expand their scale for survival. However, whether they can ultimately reach a merger agreement remains uncertain.

According to the report, both Kioxia and WD manufacture NAND Flash products. If they merge, their scale will rival that of the global market leader, Samsung Electronics. The Japanese government reportedly views the Kioxia/WD merger as a “symbol” of Japan-US semiconductor cooperation and has provided support. However, the merger negotiations hit an impasse last fall, reportedly due to opposition from SK Hynix, indirectly invested in Kioxia.

As per TrendForce’s  data for 3Q23, Samsung maintained its position as the top global NAND flash memory manufacturer, commanding a significant market share of 31.4%. Following closely, SK Group secured the second position with a 20.2% market share. Western Digital occupied the third position with a market share of 16.9%, while Japan’s Kioxia held a 14.5% market share.

Asahi News’ report further indicates that WD declared in October of last year that “all discussions had ended.” To avoid insider trading, as per the report cited sources, WD is expected to wait for a certain period before the negotiation can be resumed. Therefore, once this waiting period concludes, merger talks are set to resume in late April.

Per a report from Jiji Press on February 17th, regarding the merger proposal involving Kioxia and WD, Kioxia has proposed a collaboration with SK Hynix, which opposes the merger. Kioxia has reportedly approached SK Hynix and plans to utilize the jointly operated Japanese plants of Kioxia and WD to manufacture semiconductors for SK Hynix.

The report notes that SK Hynix and Kioxia are competitors in the NAND Flash industry. However, since 2018, SK Hynix has indirectly invested approximately 15% in the predecessor of Kioxia, “Toshiba Memory,” through the American investment fund Bain Capital. SK Hynix has consistently sought to strengthen its relationship with Kioxia since then.

Kioxia’s proposed acceptance of SK Hynix’s request to “strengthen the relationship” is seen as a gesture to persuade SK Hynix to agree to the merger proposal. The goal, as per the report, is to restart the stalled merger negotiations between Kioxia and WD.

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• [News] Kioxia and Western Digital Resume Merger Negotiations? Rumors of Bain Negotiating with SK Hynix Surface

(Photo credit: Kioxia)

South Korean memory giant SK Hynix has confirmed record-breaking sales of High Bandwidth Memory (HBM) over the past few months, driving profitability in the fourth quarter and predicting an industry-wide recovery.

According to Wccftech, SK Hynix Vice President Kim Ki-tae stated on February 21st that the demand for HBM, as an AI memory solution, is experiencing explosive growth as generative AI services become increasingly diverse and continue to evolve.

The report has cited insights from Kim Ki-tae, who stated, “HBM, with its high-performance and high-capacity characteristics, is a monumental product that shakes the conventional wisdom that memory semiconductors are only a part of the overall system. ”

Kim Ki-tae also mentioned that despite ongoing external uncertainties, the memory market is expected to gradually warm up in 2024. This is attributed to the recovery in product demand from global tech giants.

Moreover, AI devices such as PCs or smartphones are expected to increase the demand for artificial intelligence. This surge is anticipated to boost the sales of HBM3E and potentially drive up the demand for products like DDR5 and LPDDR5T.

Kim Ki-tae emphasized that their HBM products have already sold out for this year. Although it’s just the beginning of 2024, the company has already begun gearing up for 2025.

SK Hynix Plans to Establish Advanced Packaging Plant in the US

SK Hynix is reportedly set to establish an advanced packaging plant in Indiana, with the US government aiming to reduce dependence on advanced chips from Taiwan.

As per the Financial Times on February 1st, citing unnamed sources, SK Hynix’s rumored new packaging facility in Indiana may specialize in 3D stacking processes to produce HBM, which will also be integrated into NVIDIA’s GPUs.

Currently, SK Hynix produces HBM in South Korea and then ships it to Taiwan for integration into NVIDIA GPUs by TSMC.

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• [News] Reports Suggest SK Hynix to Establish Advanced Packaging Facility in the US
• [News] Subsidies from the U.S. Legislation “NAPMP” Potentially Expected to Cover IC Substrates

(Photo credit: SK Hynix)

During the “SEMICON Korea 2024” event held recently in Seoul, Chun-hwan Kim, Vice President of global memory giant SK hynix, revealed that the company’s HBM3e has entered mass production, with plans to commence large-scale production of HBM4 in 2026.

According to a report from Business Korea, Chun-hwan Kim stated that SK hynix’s HBM3e memory is currently in mass production, with plans to initiate mass production of HBM4 in 2026.

He noted that with the advent of the AI computing era, generative AI is rapidly advancing, and the market is expected to grow at a rate of 35% annually. The rapid growth of the generative AI market requires a significant number of higher-performance AI chips to support it, further driving the demand for higher-bandwidth memory.

He further commented that the semiconductor industry would face intense survival competition this year to meet the increasing demand and customer needs for memory.

Kim also projected that the HBM market would grow by 40% by 2025, with SK hynix already strategically positioning itself in the market and planning to commence production of HBM4 in 2026.

Meanwhile, previous reports have also indicated that SK hynix expected to establish an advanced packaging facility in the state of Indiana, USA, to meet the demands of American companies, including NVIDIA.

Driven by the wave of AI advancement and demand from China, the Ministry of Trade, Industry and Energy of South Korea recently announced that South Korea’s semiconductor product exports experienced a rebound in 2024. In January, exports reached approximately USD 9.4 billion, marking a year-on-year increase of 56.2% and the largest growth in 73 months.

TrendForce has previously reported the progress of HBM3e, as outlined in the timeline below, which shows that SK hynix already provided its 8hi (24GB) samples to NVIDIA in mid-August.

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• [News] Reports Suggest SK Hynix to Establish Advanced Packaging Facility in the US
• [News] Intel, SK Hynix, and NTT Japan Collaborate to Develop Next-Generation Silicon Photonics Technology

(Photo credit: SK hynix)

According to sources cited by the Financial Times, South Korean chip manufacturer SK Hynix is reportedly planning to establish a packaging facility in Indiana, USA. This move is expected to significantly advance the US government’s efforts to bring more artificial intelligence (AI) chip supply chains into the country.

SK Hynix’s new packaging facility will specialize in stacking standard dynamic random-access memory (DRAM) chips to create high-bandwidth memory (HBM) chips. These chips will then be integrated with NVIDIA’s GPUs for training systems like OpenAI’s ChatGPT.

Per one source close to SK Hynix cited by the report, the increasing demand for HBM from American customers and the necessity of close collaboration with chip designers have deemed the establishment of advanced packaging facilities in the US essential.

Regarding this, SK Hynix reportedly responded, “Our official position is that we are currently considering a possible investment in the US but haven’t made a final decision yet.”

The report quoted Kim Yang-paeng, a researcher at the Korea Institute for Industrial Economics and Trade, as saying, “If SK Hynix establishes an advanced HBM memory packaging facility in the United States, along with TSMC’s factory in Arizona, this means Nvidia can ultimately produce GPUs in the United States.”

Previously, the United States was reported to announce substantial chip subsidies by the end of March. The aim is to pave the way for chip manufacturers like TSMC, Samsung, and Intel by providing them with billions of dollars to accelerate the expansion of domestic chip production.

These subsidies are a core component of the US 2022 “CHIPS and Science Act,” which allocates a budget of USD 39 billion to directly subsidize and revitalize American manufacturing.

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• [News] TSMC Reportedly Announcing Kumamoto Plant 2 in Japan, while U.S. Subsidies Expected by End of March
• [News] Subsidies from the U.S. Legislation “NAPMP” Potentially Expected to Cover IC Substrates

(Photo credit: SK Hynix)