"In US-China Conflict, Attention on 'HBM' Increases... Favorable for Facility Establishment in US"

KB Management Research Institute, HBM Report Released

Amid the US-China semiconductor supremacy competition, there is a growing expectation that High Bandwidth Memory (HBM) will attract increased attention. As the US recognizes HBM as a strategic asset, it may seek to attract memory company production facilities domestically, and due to the nature of the HBM business, establishing related facilities locally could be advantageous.

KB Management Research Institute released a report titled 'HBM: A New Growth Engine in the Artificial Intelligence (AI) Era' on the 25th. HBM is a next-generation high-performance, high-capacity memory that stacks multiple DRAM chips vertically to enhance data processing capabilities. It has recently gained attention alongside Graphics Processing Units (GPUs) amid the spread of generative AI.

The report anticipates that demand for HBM could increase not only with AI but also with the expansion of new technologies such as autonomous driving and various smart services. It also stated, "HBM holds high potential to advance high-performance computing (HPC)" and "is expected to emerge as a new paradigm in the high-performance, high-value memory market."

[Image source=KB Management Research Institute report]

The HBM market is in its early formation stage. Domestic memory companies such as Samsung Electronics and SK Hynix hold a 90% market share. Market research firm Mordor Intelligence projects that the HBM market could grow from $2 billion this year to $6.3 billion by 2028, with an average annual growth rate of 25.4%.

However, the intensifying US-China semiconductor supremacy competition is a concern. The report noted, "Following the US ban on high-performance GPU exports early last year, additional export restrictions were announced this month," and warned, "If the AI semiconductor market stagnates due to the GPU export ban to China, it could negatively impact domestic memory companies' HBM sales."

The report also suggested that the US recognizes HBM as an essential strategic resource in future technology competition and may induce domestic memory companies to establish production facilities in the US through the CHIPS Act semiconductor support law. It stated, "Funding for memory semiconductors is expected to prioritize HBM over general-purpose memory."

[Image source=KB Management Research Institute report]

From the perspective of domestic memory companies, receiving support from the US government while establishing HBM research and development (R&D) centers and some production facilities locally would be beneficial. Unlike general memory, HBM is a custom-order business that collaborates with customers from the R&D stage to deliver tailored products. The US is considered the largest demand market due to major GPU companies such as Nvidia, AMD, and Intel.

Currently, Samsung Electronics is building a foundry (semiconductor contract manufacturing) plant in Taylor, Texas, aiming for completion within the year. Combining the GPUs and HBM produced here directly can reduce costs and improve operational efficiency. Applying advanced foundry process technology to next-generation HBM products could also enhance manufacturing competitiveness.

SK Hynix announced a $15 billion investment plan last year to establish advanced memory packaging facilities and an R&D center in the US. The report forecasted that "(SK Hynix) will strengthen its competitiveness in Through Silicon Via (TSV), a core HBM technology, in the mid to long term at this site."

This content was produced with the assistance of AI translation services.