SK Hynix projects 30% annual HBM chip demand growth to 2030 driven by AI

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].

Source:

[1] title: SK Hynix forecasts AI memory chips to grow 30% annually ...

url: https://www.techinasia.com/news/sk-hynix-forecasts-ai-memory-chips-to-grow-30-annually-to-2030

[2] title: Advantage Micron? SK Hynix Sees HBM Chip Sales ...

url: 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] title: SK Hynix Poised to Lead AI Memory Chip Boom Amid ...

url: https://news.ssbcrack.com/sk-hynix-poised-to-lead-ai-memory-chip-boom-amid-structural-shift-in-semiconductor-demand/

[6] title: AI Memory Market to Grow as Amazon, Microsoft, and ...

url: https://www.gurufocus.com/news/3051721/ai-memory-market-to-grow-as-amazon-microsoft-and-google-expand-investments