[Chiptalk] Growing HBM Expectations... Semiconductor Equipment Industry Also Busy

Hanmi Semiconductor HBM Equipment Performance Increase
US AMAT and Lam Research Also Benefit from Equipment
"HBM Market Annual Growth Rate 16%"

This year, high-bandwidth memory (HBM), which was the hottest topic in the semiconductor industry, is expected to remain a key driver of growth in the semiconductor market next year. Not only Samsung Electronics and SK Hynix, which produce HBM, but also domestic and international semiconductor equipment manufacturers supplying the necessary production equipment are raising their expectations. The global HBM market is projected to grow to approximately $5.2 billion by 2027.

Korean semiconductor equipment company Hanmi Semiconductor announced last week that it has shipped its new equipment for HBM manufacturing, the 'Dual TC Bonder Griffin,' for the first time. This equipment is a new bonding product used to attach chips during the HBM manufacturing process, which stacks multiple DRAMs vertically. Following the announcement in October that it had secured an order worth 59.6 billion KRW from SK Hynix, the company quickly proceeded to the first shipment within about a month.

Hanmi Semiconductor is expanding its business in the HBM market by introducing several pieces of equipment based on its core bonding technology. From next year, related sales are expected to be fully reflected in its performance. Jung Min-kyu, a researcher at Sangsangin Securities, estimated that "considering the growth potential of the HBM market, Hanmi Semiconductor's bonder equipment sales (including those for HBM) will reach 235.6 billion KRW next year." This accounts for more than half of Hanmi Semiconductor's projected sales of 450 billion KRW for next year.

Since the emergence of ChatGPT in November last year, demand for artificial intelligence (AI) has exploded, rapidly accelerating the growth of the HBM market. Market research firm Gartner forecasts that the global HBM market will grow from $3.319 billion next year to $5.177 billion by 2027, with an average annual growth rate of 16%. This is why HBM suppliers such as Samsung Electronics and SK Hynix are planning to more than double their HBM production capacity next year to meet demand.

The more HBM suppliers expand their capacity, the more equipment needed for HBM production is required. Major global semiconductor equipment companies such as Applied Materials (AMAT) and Lam Research are supplying HBM production equipment to manufacturers and expanding their related businesses. They are focusing on supplying the technology and equipment necessary for the HBM manufacturing process, including through-silicon via (TSV) processes and the upcoming hybrid bonding technology.

TSV is an advanced packaging technology that drills tiny holes between vertically stacked chips to connect them with electrodes. Lam Research exclusively supplies etching and deposition equipment used in the TSV process to Samsung Electronics and SK Hynix. To meet the demand of Samsung Electronics’ HBM production line being established in Cheonan, Lam Research recently opened an office nearby.

Image of Samsung Electronics HBM3E product (top) and SK Hynix HBM3E product / [Image courtesy of each company]

In the case of AMAT, it has partnered with Dutch semiconductor equipment company BESI to promote the spread of hybrid bonding equipment. Hybrid bonding is a technology that eliminates the bumps (spherical conductive protrusions) previously placed between chips when stacking them and directly attaches other chip dies onto the wafer. It is expected to be fully applied starting with the HBM 6th generation product (HBM4) released after 2026. AMAT stated that it is collaborating with HBM suppliers for this purpose.

At the earnings announcement for the fourth quarter of fiscal year 2023, which ended in October, AMAT cited HBM as a key factor behind this year's improved performance compared to last year. Bryce Hill, AMAT’s Chief Financial Officer (CFO), mentioned HBM as one of the major areas guaranteeing market leadership and business growth, expressing optimism about expanding business opportunities.

Domestically, semiconductor equipment companies such as SEMES (a Samsung Electronics subsidiary), YESTI, and STI are actively expanding their HBM-related business. Last month, YESTI announced that it would supply Samsung Electronics with HBM pressurizing equipment worth 12.3 billion KRW. This followed another order to supply HBM manufacturing equipment worth approximately 4.9 billion KRW to Samsung Electronics that same month, delivering consecutive order news.

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