Micron Targets 25% HBM Market by 2025

Micron, a prominent U.S. memory chip manufacturer, announced on June 5th its projection that by 2025, its market share in High Bandwidth Memory (HBM) will reach approximately 20-25%, aligning with its current DRAM market share. This ambitious forecast sets Micron in direct competition with major HBM players such as SK Hynix and Samsung.

According to BusinessKorea, SK Hynix initiated mass production and delivery of its 8-layer HBM3E products in March this year, followed by Samsung in April. SK Hynix subsequently accelerated its plans, announcing in late April that it would advance the availability of its 12-layer HBM3E samples to May and commence mass production by the third quarter of this year.

Market analysts attribute SK Hynix's swift actions to Micron's proactive HBM strategy. Micron reported during its second fiscal quarter conference call a robust demand for its HBM products, with all 2024 supplies allocated and significant allocations already secured for 2025. In the third-quarter earnings call, Micron disclosed that revenue from its fifth-generation HBM (HBM3E) had exceeded $100 million for the fiscal quarter and anticipated annual revenue to potentially reach billions in the coming fiscal year. Micron aims to bolster its HBM market share to 20-25% by 2025.

To meet escalating market demands, Micron has increased its 2024 fiscal year capital expenditure from $7.5-8 billion to $8 billion, primarily to expand HBM production capacity. Currently holding a 9% share of the HBM market, Micron is exploring options such as converting its Malaysian facility into an exclusive HBM production line and expanding operations at its Taichung plant in Taiwan. Micron's new manufacturing base in Hiroshima, Japan, will further solidify its position as a key HBM supplier. With the continued growth in high-performance computing, artificial intelligence applications, and GPU demand, the competition in the HBM market intensifies. Micron's strategic initiatives and technological advancements underscore its role as a formidable competitor against SK Hynix and Samsung.

Responding to Micron's assertive strategy, industry sources note that Samsung's HBM3E products are pending NVIDIA certification. Samsung aims to achieve certification for its 8-layer HBM products by the third quarter and for its 12-layer HBM products by the fourth quarter of this year. Samsung's substantial presence in the HBM market is crucial for global supply adequacy. Samsung plans to triple its HBM supply this year and double it by 2025, with plans already underway for mass production of 12-layer HBM3E by 2025.

SK Hynix, currently holding a dominant 53% share of the global HBM market, has accelerated its timeline to begin mass production of its sixth-generation 12-layer HBM (HBM4) in 2025, ahead of its initial 2026 plan. The company's M15x facility in Cheongju, Korea, is slated to establish an integrated HBM production line, including EUV equipment, expected to be operational by the third quarter of 2026.

Highlighting its commitment to innovation, SK Group announced on June 30th a 103 trillion won (approximately $74.7 billion) investment plan by 2028 to enhance its AI-focused memory chip business. Approximately 80% of this investment (82 trillion won) will support the development of high-bandwidth memory (HBM) chips, crucial for advancing AI chip capabilities.