HBM4 Premium Expected to Surpass 30% Due to Complex Manufacturing

TrendForce, a prominent market research firm, has released a report indicating that the premium for HBM4 is expected to surpass 30%. This forecast is based on the 20% premium observed when HBM3e was first introduced. The increased complexity in manufacturing HBM4 is the primary factor driving this anticipated higher premium. The development of HBM technology is being propelled by the rising demand for AI servers, with three major manufacturers actively advancing their HBM4 product lines.

The increased I/O (input/output interface) count in HBM4, along with its complex chip design, has led to an increase in wafer area. Additionally, some suppliers have adopted a logic chip architecture to enhance performance, further driving up costs. These factors collectively contribute to the higher premium for HBM4. Leading AI chip manufacturers, such as NVIDIA and AMD, have recently unveiled new products that will feature HBM4 technology. NVIDIA introduced the latest Rubin GPU at this year's GTC conference, while AMD showcased the MI400. These advancements underscore the industry's focus on enhancing AI capabilities through innovative memory solutions.

According to TrendForce's analysis, compared to previous generations, HBM4's I/O count has doubled from 1024 to 2048, while maintaining a data transfer rate of over 8.0Gbps, comparable to HBM3e. This means that at the same transfer speed, HBM4 with its higher channel count will transmit data at double the volume. The increased I/O count and complex chip design of HBM4 have led to an increase in wafer area, contributing to the higher manufacturing costs. Some suppliers have adopted a logic chip architecture to enhance performance, further driving up costs. These factors collectively contribute to the higher premium for HBM4.

The development of HBM technology is being driven by the growing demand for AI servers, with three major manufacturers actively advancing their HBM4 product lines. Leading AI chip manufacturers, such as NVIDIA and AMD, have recently unveiled new products that will feature HBM4 technology. NVIDIA introduced the latest Rubin GPU at this year's GTC conference, while AMD showcased the MI400. These advancements highlight the industry's focus on enhancing AI capabilities through innovative memory solutions. The increased I/O count and complex chip design of HBM4 have led to an increase in wafer area, contributing to the higher manufacturing costs. Some suppliers have adopted a logic chip architecture to enhance performance, further driving up costs. These factors collectively contribute to the higher premium for HBM4.