Micron Targets 25% HBM Market Share by 2025

On June 5th, Micron made a significant announcement regarding its strategic plans in the HBM market. The company aims to capture over 20% of the market share for the fiscal year 2024, with an ambitious target of reaching 25% by the end of fiscal year 2025.

Market data from TrendForce indicates that in 2023, SK Hynix is projected to lead the global HBM market with a potential market share of 53%, followed by Samsung at 38%, and Micron at approximately 9%. Micron's endeavor to expand its HBM business underscores the necessity for both technological innovation and substantial production capacity.

Micron attributes its progress in the HBM3E sector to its advanced packaging and design capabilities, coupled with the integration of leading-edge process technology. The company is currently in the process of developing the next generation of HBM4 products. In terms of production capacity, Micron is considering expansion not only in the United States but also in Hiroshima, Japan.

In response to the increasing market demand for HBM, Micron has revised its capital expenditure for fiscal year 2024, raising it from $7.5-8 billion to $8 billion, primarily to bolster HBM production capacity.

It's noteworthy that Micron's HBM3E has received certification from NVIDIA, positioning it favorably against competitors like Samsung, which have yet to achieve similar certification. This suggests that Micron's market share in the HBM sector is poised for growth, particularly with the anticipated shipments of NVIDIA's new AI chips.

During the June 5th press conference, Micron also unveiled its GDDR7 memory based on a 1β (1-beta) process. These samples, leveraging Micron's 1-beta technology, promise over 50% improved energy efficiency compared to the previous generation GDDR6, addressing heat dissipation concerns and extending battery life.

Micron highlights that GDDR7 technology, with its transition from PAM4 to PAM3, offers speeds of up to 32 Gb per second and a system bandwidth of 1.5TB per second, a 60% increase over GDDR6. Its versatile applications span across AI, gaming, and high-performance computing, with product shipments expected to commence in the latter half of this year.