SK Hynix Forecasts 30% Annual Growth for AI Memory Market to 2030

SK Hynix forecasts the AI memory market to grow 30% annually to 2030, driven by strong demand from cloud computing companies. The high-bandwidth memory (HBM) market is expected to reach tens of billions of dollars by 2030, with SK Hynix as the main supplier to Nvidia. The market is undergoing a strategic shift due to technological changes, making it harder to replace rival memory products. Customers are increasingly seeking customisation, which is expected to drive further growth in the market.

SK Hynix, a leading South Korean semiconductor company, has forecasted a significant growth in the AI memory market, expecting it to grow at a rate of 30% annually until 2030. This projection is driven by strong demand from cloud computing companies, which are increasingly investing in AI technologies.

High-bandwidth memory (HBM), a specialized form of memory chip designed for AI applications, is expected to reach tens of billions of dollars by 2030, according to SK Hynix's senior executive, Choi Joon-yong [1]. The company's optimism is based on the firm and strong demand for AI from end-users, which is likely to revise AI capital spending upwards [1].

The relationship between AI build-outs and HBM purchases is "very straightforward" and there is a direct correlation between the two [1]. SK Hynix's projections are conservative and consider constraints such as available energy [1]. However, the memory business is undergoing a significant strategic change, with technological advancements making it harder to replace rival memory products [1].

SK Hynix is currently the main supplier of HBM to Nvidia, although Samsung and Micron also supply it with smaller volumes [1]. The market is expected to grow due to increasing customer demand for customisation, with larger customers like Nvidia receiving individual customisation and smaller clients getting a one-size-fits-all approach [1].

The market's growth is also supported by technological changes in the way SK Hynix and its rivals build next-generation HBM4, which includes a customer-specific logic die or "base die" that helps manage the memory [1]. This customisation trend is expected to drive further growth in the market [1].

References:
[1] https://www.reuters.com/world/asia-pacific/sk-hynix-expects-ai-memory-market-grow-30-year-2030-2025-08-10/