SK Hynix projects annual growth of 30 percent in the high-bandwidth memory (HBM) market through 2030.
The estimate is a direct result of strong demand from AI applications. Major technology companies, including Amazon, Microsoft, and Google, are notable key investors in AI.
This investment directly increases the need for faster and more efficient AI memory.
Choi Joon-yong, head of HBM business planning at SK Hynix, confirmed that demand for AI-related memory remains strong.
He noted a clear link between AI’s expansion and rising purchases of HBM chips.
High-Bandwidth Memory
HBM is a specialized form of dynamic random access memory (DRAM). It stacks memory chips vertically to reduce latency, increase data transfer speeds, and lower energy use.
This is critical for the complex workloads that advanced AI models require. As AI tasks grow more sophisticated, they demand greater processing power.
This trend ensures that memory technology evolves alongside AI’s rapid progress. SK Hynix expects this cycle to sustain growth for years to come.
Customization
The company is now focusing on customization. The upcoming HBM4 generation introduces a customer-specific “base die” at the control layer of the memory stack.
This allows performance to be tailored to the precise architecture and workload of each client’s systems.
Such customization strengthens relationships between suppliers and buyers. Once integrated into a system, replacing these chips with another supplier’s product becomes difficult and costly.
This dynamic provides chipmakers with a competitive advantage in retaining long-term clients, like Nvidia, which remains SK Hynix’s largest customer for customized HBM chips.
The company also provides standard, high-performance designs for buyers that do not require deep customization.
Market Opportunities
The custom HBM market could reach tens of billions of dollars by 2030. SK Hynix considers its projections conservative, accounting for practical constraints such as sustainable energy supply.
The company believes the arrival of HBM4 will accelerate adoption, even if short-term price drops occur due to temporary oversupply in current-generation HBM3E chips.
Other market forces are also at work. Geopolitical policies, including proposed tariffs on foreign-made chips, could affect global supply chains.
However, SK Hynix and Samsung are less exposed to such measures due to their significant investments in U.S. manufacturing facilities.
