SK hynix Expects HBM Demand to Grow 30% Annually Through 2030

SK hynix, a leading memory chipmaker, expects demand for high-bandwidth memory (HBM) used in AI to grow at a rate of 30% annually through 2030. The company cites strong end-user demand and rising cloud capex from major tech firms such as Amazon, Microsoft, and Google as key drivers of growth. SK hynix forecasts the custom HBM market to reach tens of billions of dollars by 2030, highlighting durable demand and potential pricing power for leading AI memory suppliers.

South Korea’s SK Hynix has projected that the annual demand for high-bandwidth memory (HBM) chips used in artificial intelligence will grow by 30% until 2030, driven by the expanding AI infrastructure and increasing investments from leading cloud computing firms [1]. The company has emphasized that cloud giants like Amazon, Microsoft, and Google are expected to continue ramping up their AI-related capital expenditures, which will directly boost the demand for HBM [6].

Choi Joon-yong, head of SK Hynix’s HBM business planning, stated that the current demand for AI from end users remains “firm and strong.” He noted a clear and measurable correlation between the rate of AI infrastructure development and the number of HBM chips being procured by tech companies [1]. As AI systems become more sophisticated, the need for powerful, energy-efficient hardware is intensifying, reinforcing the cycle of innovation and demand for HBM [1].

The HBM market is also shifting toward highly customized solutions. SK Hynix, alongside Samsung and Micron, is preparing to launch the next-generation HBM4 chips, which feature a customer-specific “base die” to enable more tailored performance for clients’ AI workloads [6]. These chips are designed to enhance speed, efficiency, and scalability by aligning more closely with the specific architectural requirements of advanced AI models [6]. This move toward customization not only strengthens the performance of AI systems but also deepens the dependency of clients on their suppliers, reducing the ease of switching between memory providers [6].

SK Hynix’s largest customer for HBM chips is Nvidia, which integrates the company’s memory solutions into its high-end AI GPUs. While the firm also offers standard HBM products, its most lucrative growth is expected to come from the increasingly popular customized offerings [1]. The company forecasts that the custom HBM product market will expand to tens of billions of dollars by 2030 [1].

Despite the long-term optimism, SK Hynix has acknowledged short-term challenges, such as potential price declines due to oversupply of HBM3E chips. However, the firm remains confident in its ability to maintain a competitive edge through the introduction of HBM4 and the growing adoption of customized memory solutions [6]. The company has also taken steps to solidify its position in the market by announcing new investments, including a high-tech semiconductor packaging plant and an AI research center in Indiana, U.S. [6].

Industry forecasts align with SK Hynix’s expectations, with some analysts projecting that the HBM market could reach up to $130 billion by 2030, up from $4 billion in 2023 [2]. SK Hynix’s 30% annual growth projection places it in a strong position to benefit from the structural shift in semiconductor demand driven by AI [5].

Nevertheless, the company has also taken a cautious stance, factoring in potential limitations such as energy supply constraints in its long-term planning [6]. It has not commented on the proposed 100% U.S. tariff on imported semiconductor chips from countries without U.S. manufacturing facilities, which could affect global semiconductor players like SK Hynix and Samsung [6].

References:
[1] https://www.techinasia.com/news/sk-hynix-forecasts-ai-memory-chips-to-grow-30-annually-to-2030
[2] https://in.investing.com/news/stock-market-news/advantage-micron-sk-hynix-sees-hbm-chip-sales-growing-by-30-every-year-through-2030-on-very-firm-and-strong-ai-demand-4954923
[5] https://news.ssbcrack.com/sk-hynix-poised-to-lead-ai-memory-chip-boom-amid-structural-shift-in-semiconductor-demand/
[6] https://www.gurufocus.com/news/3051721/ai-memory-market-to-grow-as-amazon-microsoft-and-google-expand-investments