Micron: AI Demand Surge, EUV DRAM Production Set for 2025

Micron Technology has fully allocated its high-bandwidth memory (HBM) production capacity through 2025 in response to rising demand for artificial intelligence (AI) applications, expanding from cloud servers to consumer devices. Donghui Lu, Micron’s Vice President and head of Taiwan operations, emphasized that the company is capitalizing on the surge in AI demand and anticipates performance improvements by 2025.

Lu highlighted that the advent of large language models (LLMs) has driven unprecedented demand for advanced memory and storage solutions. As one of the largest global storage manufacturers, Micron is well-positioned to harness this growth. Despite recent investments in AI primarily aimed at building data centers for LLMs, Lu notes that this infrastructure remains under development and will take years to fully mature.

Micron projects the next wave of AI growth will emerge from integrating AI into consumer devices like smartphones and personal computers, requiring substantial increases in storage capacity to support AI functionality. Lu explained that HBM involves advanced packaging technology, combining front-end (wafer manufacturing) and back-end (packaging and testing) processes, presenting new challenges for the industry.

In the competitive memory sector, rapid product development and enhancement are essential. Lu mentioned that HBM production could impact traditional memory output, as each HBM chip demands multiple standard memory chips, potentially adding pressure on industry-wide capacity. He pointed to the delicate balance of supply and demand in the memory market, cautioning that oversupply risks triggering price competition and industry slowdowns.

Lu underscored Taiwan’s crucial role in Micron’s AI initiatives, highlighting the region’s R&D teams and production facilities as key to developing and manufacturing HBM3E products. Micron’s HBM3E solutions are commonly integrated with TSMC’s CoWoS technology, a close collaboration that delivers significant competitive advantages.

Recognizing the role of extreme ultraviolet (EUV) lithography in enhancing memory performance and density, Micron has opted to delay its adoption of EUV for the 1α and 1β nodes, prioritizing performance and cost-efficiency. Lu cited EUV's high cost and manufacturing complexity, emphasizing that postponing EUV adoption enables Micron to produce high-performance memory at a competitive price point more effectively.

Micron has stated that its 8-layer and 12-layer HBM3E offerings deliver up to 30% lower power consumption than competitor products. The company plans to begin large-scale production on the EUV-enabled 1γ node in Taiwan in 2025, with EUV adoption in its Hiroshima, Japan facility to follow at a later stage.