HBMs share of RAM market sales is expected to quadruple
Hardware

HBM’s share of RAM market sales is expected to quadruple by 2026

According to many analysts, the memory industry can quickly emerge from the current crisis of overproduction due to the actively growing demand for HBM chips from manufacturers of artificial intelligence components. Currently, this storage type accounts for no more than 5% of all industry sales, but by 2026 that share could rise to 20%.

    Image source: SK hynix

Image source: SK hynix

These predictions are shared with The Wall Street Journal SemiAnalysis Analysts. According to them, chips of the HBM type are on average 5 times more expensive than standard DRAMs, which allows them to quickly increase their share of sales even with moderate changes in the dynamics of natural indicators.

According to TrendForce, the South Korean company SK hynix last year controlled about half of the HBM memory market and was the main supplier of corresponding chips for the needs of NVIDIA, the leader in the segment of computational accelerators for artificial intelligence systems. Samsung Electronics accounted for 40% of the segment, while late-comer Micron Technology was content with 10%. At the report conference in April, SK hynix management announced that the company’s revenue from sales of HBM chips will increase by more than 50% in 2023 compared to the previous year. Samsung also wants to benefit from the AI ​​boom when it comes to delivering memory chips.

Citi analysts added that the proportion of RAM used in AI systems will increase from the current 16% to 41% by 2025, so this market segment will start to significantly impact storage vendors’ revenues. However, in the short term, this factor is unable to correct the situation with overproduction of memory chips, causing many manufacturers to face significant losses and reduce production volumes to record lows.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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