The demand for high-performance memory semiconductors essential for AI chips is experiencing explosive growth due to the escalating demand for AI chips among global tech companies involved in the cloud server business. Consequently, there are high expectations for the upcoming business prospects of domestic companies that provide these memory chips. The focus is on the next-generation products related to High Bandwidth Memory (HBM) chips set to be launched by Samsung Electronics and SK hynix next year.

Samsung and SK hynix are currently at the forefront of the global market in the AI era, leading with HBM, a technology gaining significant attention for its use in DRAM. HBM is a high-performance product that vertically stacks multiple DRAM chips and finds applications in devices like Graphic Processing Units (GPUs) designed for AI processing.

HBM is being developed in multiple generations, namely 1st generation (HBM), 2nd generation (HBM2), 3rd generation (HBM2E), 4th generation (HBM3), and 5th generation (HBM3E). With each new generation, the chip’s bandwidth is enhanced, resulting in faster speed and higher memory capacity, making HBM a preferred choice for AI-related tasks.Both Samsung and SK hynix are currently supplying HBM2E to global customers and are dominating the market.

In an annual report released on July 28 (local time), Microsoft highlighted a novel risk factor in its cloud business, mentioning a GPU shortage for the first time and emphasizing the necessity for expanding the AI GPU market. Microsoft said, “Data center operations depend on predictable land, energy, networking supply and servers, including graphic processing units (GPUs).”

However, with the news of NVIDIA’s plans to launch the next-generation “GB100” chip in 2025, concerns about domestic companies’ HBM3 supply have grown. To meet the demand, Samsung and SK hynix are expected to release HBM3E samples in the first quarter of next year, with mass production commencing in the second half of 2024. HBM3E utilizes advanced 5th-generation process technology in the 10-nanometer range. Micron, a U.S.-based semiconductor company, recently announced its intention to independently develop HBM3E, declaring its entry into the HBM market led by SK hynix and Samsung, attracting industry attention. Nevertheless, the industry believes that it won't be easy for Micron to catch up with the technological capabilities of SK hynix and Samsung in this field.