HBM Shipments to Surge 70% by 2025

On December 25th, market research firm TechInsights released a report forecasting substantial growth in the memory market, including DRAM and NAND, by 2025. This growth is largely attributed to the accelerating adoption of Artificial Intelligence (AI) and related technologies.

According to TechInsights, the rise of AI, particularly in data-intensive applications such as machine learning and deep learning, is driving an unprecedented demand for high-bandwidth memory (HBM). It is expected that HBM shipments will increase by 70% year-on-year by 2025, as data centers and AI processors increasingly rely on this memory type to handle large volumes of data with low latency. This surge in HBM demand is predicted to reshape the DRAM market, with manufacturers prioritizing HBM production over traditional DRAM products.

In addition, TechInsights forecasts that capital expenditures (CapEx) in the memory market will increasingly be directed towards DRAM, especially HBM, as AI applications continue to drive demand. As manufacturers expand their production capacities to meet this growing need, DRAM CapEx is expected to grow by nearly 20% year-on-year. However, this shift in focus could lead to limited investment in NAND production, potentially resulting in supply bottlenecks in the market. The profitability of NAND is expected to improve, which may reignite investment interest in this sector by 2026.