SK hynix’s 2025 HBM Memory Supply Nearing Depletion, Demand Surges

The demand for high-performance processors used in AI training is on the rise, leading to a surge in demand for the components that make up these processors. SK hynix, a major player in the semiconductor industry, has announced that its production capacity for high-bandwidth memory (HBM) has already been sold out for the remainder of 2024, and a significant portion of 2025 as well.

SK hynix supplies HBM memory to various tech giants including Amazon, AMD, Facebook, Google (Broadcom), Intel, Microsoft, and nVidia. NVIDIA, in particular, heavily relies on HBM3 and HBM3E memory for its accelerators such as H100, H200, and GH200. The company is striving to meet the ever-increasing demand for its accelerators, which remains unfulfilled.

As a result, orders for HBM memory are now backlogged well into 2025, as chip vendors scramble to secure these critical memory stacks for their products. SK hynix is the second HBM memory vendor in recent months to announce that they have sold out their production capacity until 2025, following a similar announcement from Micron regarding its HBM3E production. However, SK hynix’s announcement carries more weight due to its larger production capacity compared to Micron.

According to market tracking firm TrendForce, SK hynix currently holds a significant market share of around 46% to 49% in the HBM market. It is expected that their market share will not decrease significantly in 2025. On the other hand, Micron’s market share in the HBM memory market ranges between 4% and 6%. With both companies’ HBM supply sold out until most of 2025, it is likely that over 50% of the industry’s total HBM3/HBM3E supply for the upcoming quarters has already been accounted for.

Samsung, another major player in the semiconductor industry, has not yet commented on the demand for HBM. However, given that memory is a highly interchangeable commodity, it would be surprising if Samsung is not facing similar demand. This situation indicates that the industry is heading towards an HBM3 memory shortage.

In other news, SK hynix has announced that it is currently sampling 12-Hi 36GB HBM3E stacks with its customers and plans to begin volume shipments in the third quarter.

Background Information

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About AMD:

AMD, a large player in the semiconductor industry is known for its powerful processors and graphic solutions, AMD has consistently pushed the boundaries of performance, efficiency, and user experience. With a customer-centric approach, the company has cultivated a reputation for delivering high-performance solutions that cater to the needs of gamers, professionals, and general users. AMD's Ryzen series of processors have redefined the landscape of desktop and laptop computing, offering impressive multi-core performance and competitive pricing that has challenged the dominance of its competitors. Complementing its processor expertise, AMD's Radeon graphics cards have also earned accolades for their efficiency and exceptional graphical capabilities, making them a favored choice among gamers and content creators. The company's commitment to innovation and technology continues to shape the client computing landscape, providing users with powerful tools to fuel their digital endeavors.

  

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About Broadcom:

Founded in 1961, Broadcom is a leading global technology company headquartered in the United States. They specialize in semiconductor and infrastructure software solutions. Broadcom's innovations in connectivity, networking, and storage technologies have made them a key player in the industry, with a focus on enabling seamless communication and connectivity in the digital world.

  

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About Google:

Google, founded by Larry Page and Sergey Brin in 1998, is a multinational technology company known for its internet-related services and products. Initially for its search engine, Google has since expanded into various domains including online advertising, cloud computing, software development, and hardware devices. With its innovative approach, Google has introduced influential products such as Google Search, Android OS, Google Maps, and Google Drive. The company's commitment to research and development has led to advancements in artificial intelligence and machine learning.

  

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About Intel:

Intel Corporation, a global technology leader, is for its semiconductor innovations that power computing and communication devices worldwide. As a pioneer in microprocessor technology, Intel has left an indelible mark on the evolution of computing with its processors that drive everything from PCs to data centers and beyond. With a history of advancements, Intel's relentless pursuit of innovation continues to shape the digital landscape, offering solutions that empower businesses and individuals to achieve new levels of productivity and connectivity.

  

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About Microsoft:

Microsoft, founded by Bill Gates and Paul Allen in 1975 in Redmond, Washington, USA, is a technology giant known for its wide range of software products, including the Windows operating system, Office productivity suite, and cloud services like Azure. Microsoft also manufactures hardware, such as the Surface line of laptops and tablets, Xbox gaming consoles, and accessories.

  

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About nVidia:

NVIDIA has firmly established itself as a leader in the realm of client computing, continuously pushing the boundaries of innovation in graphics and AI technologies. With a deep commitment to enhancing user experiences, NVIDIA's client computing business focuses on delivering solutions that power everything from gaming and creative workloads to enterprise applications. for its GeForce graphics cards, the company has redefined high-performance gaming, setting industry standards for realistic visuals, fluid frame rates, and immersive experiences. Complementing its gaming expertise, NVIDIA's Quadro and NVIDIA RTX graphics cards cater to professionals in design, content creation, and scientific fields, enabling real-time ray tracing and AI-driven workflows that elevate productivity and creativity to unprecedented heights. By seamlessly integrating graphics, AI, and software, NVIDIA continues to shape the landscape of client computing, fostering innovation and immersive interactions in a rapidly evolving digital world.

  

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About Samsung:

Samsung, a South Korean multinational conglomerate, has established itself as a global leader in various industries, including electronics, technology, and more. Founded in 1938, Samsung's influence spans from smartphones and consumer electronics to semiconductors and home appliances. With a commitment to innovation, Samsung has contributed products like the Galaxy series of smartphones, QLED TVs, and SSDs that have revolutionized the way we live and work.

  

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About SK hynix:

SK Hynix is a important South Korean semiconductor company known for its innovative contributions to the global technology landscape. Specializing in the production of memory solutions, SK Hynix has played a vital role in shaping the semiconductor industry. With a commitment to research and development, they have continuously pushed the boundaries of memory technology, resulting in products that power various devices and applications.

  

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Technology Explained

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HBM3E: HBM3E is the latest generation of high-bandwidth memory (HBM), a type of DRAM that is designed for artificial intelligence (AI) applications. HBM3E offers faster data transfer rates, higher density, and lower power consumption than previous HBM versions. HBM3E is developed by SK Hynix, a South Korean chipmaker, and is expected to enter mass production in 2024. HBM3E can achieve a speed of 1.15 TB/s and a capacity of 64 GB per stack. HBM3E is suitable for AI systems that require large amounts of data processing, such as deep learning, machine learning, and computer vision.

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