SK Hynix estimates that the high-bandwidth AI memory market will grow at a rate of around 30% annually by 2030. Know why this is big news for the tech industry.
SK Hynix’s estimate – Golden future of AI memory market
South Korean chipmaker SK Hynix believes that the global market for high-bandwidth memory (HBM) used for artificial intelligence (AI) will grow at a rate of about 30% every year by 2030. This estimate was shared by the company’s HBM business planning head Choi Jun-yong in a conversation with Reuters.
HBM is a special type of Ai memory used to process large amounts of data in AI applications or tools. In this technology, first introduced in 2013, chips are stacked vertically, which saves space and reduces power consumption.
Increasing demand for AI and HBM are directly related
According to Choi, big cloud computing companies like Amazon, Microsoft and Google are investing billions of dollars in AI, and this figure may increase even more in the coming time. This is the reason that the demand for HBM will be directly affected.
He said, “End-user demand for AI is very strong right now.” SK Hynix believes that their estimate is quite conservative even keeping in mind limitations like energy.
Memory business changing due to customization
A big change is now being seen in the HBM market. Earlier DRAM chips could be easily replaced, but now next-generation chips like HBM4 are using customer-specific logic die (Base Die). This means that chips have to be customized for every customer.
Currently, this feature is offered mainly to large clients such as Nvidia, while a standard version is available for smaller customers. “Each customer has different needs — some want better performance, some want less power consumption,” says Choi.
SK Hynix’s position in the market
SK Hynix is currently the largest supplier of HBM to Nvidia, while Samsung and Micron also supply small quantities. However, Samsung recently warned that current HBM3E supply may exceed demand in the near future, which could put pressure on prices.
Despite this, SK Hynix is confident that it will provide accurate and competitive products to customers. The company believes that the demand for customization will increase further in the coming years, due to which the HBM market can reach the level of billions of dollars.
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