[News Terms] Next-Generation Semiconductor 'HBM' as a National Strategic Technology

Published 24 Jan.2024 16:26(KST)

The government has selected High Bandwidth Memory (HBM) as a national strategic technology in the semiconductor sector. HBM is a next-generation semiconductor that vertically connects multiple DRAM chips to dramatically enhance data processing speeds.

[News Terms] Next-Generation Semiconductor 'HBM' as a National Strategic Technology

In semiconductors, bandwidth refers to the data transfer rate per second. High Bandwidth Memory, as the name suggests, significantly improves the data transfer speed per second compared to existing products. Simply put, if the previous bandwidth allowed the transfer of one movie per second, HBM?with its widened data pathways?can handle over 50 movies per second.

To manufacture HBM, the Through-Silicon Via (TSV) process is essential. Unlike conventional DRAM, this process involves drilling tiny holes through stacked semiconductor layers and filling them with conductive material to electrically connect the top and bottom chips. The TSV process allows direct vertical chip connections, which is advantageous for space efficiency and rapid signal transmission. It also aligns with market trends aiming to miniaturize memory. Compared to traditional DRAM, HBM offers overwhelmingly faster data processing speeds without significantly increasing size, driving explosive demand in the artificial intelligence (AI) industry, which requires rapid learning and processing of vast amounts of data.

According to market research firm Gartner, the HBM market size is expected to grow approximately 2.5 times from $2 billion last year to $5.1 billion by 2027. TrendForce also forecasts an average annual growth rate of 45% in the HBM market from last year through 2025. Globally, Samsung Electronics and SK Hynix dominate the market, engaging in a fierce technological competition to maintain a significant lead.

Meanwhile, with the government including HBM-related technologies within the scope of national strategic technologies, companies can receive tax credits of up to 50% on related research and development (R&D) expenses starting this year. Specifically, small and medium-sized enterprises can receive tax credits of 40-50% on HBM-related R&D costs, while medium and large enterprises can receive 30-40% tax credits.