HBM Market To Witness Price Surge Up To 10% By 2025 As Demand Set To Double Next Year

HBM Market To Witness Price Surge Up To 10% By 2025 As Demand Set To Double Next Year

The AI ​​hype has driven the demand for HBM to new heights and is expected to double by next year with a significant price increase of up to 10%.

The hunger for AI computing power increased HBM supply exponentially, driving unit prices to new levels.

Research Outlet, Trend force Reports that the memory industry has benefited greatly from demand for AI-focused activities, with HBM sales contributing to the markets recovery. Avril Wu, Senior Research Vice President of TrendForce, revealed that HBM has seen strong growth in revenue share in the memory industry, outpacing both consumer and client DRAM sales. The unit price of HBM is said to be significantly higher than that of DRAM, which shows how much the standard has dominated in recent times.

Image source: Trendforce

Moving into data, HBM's share of DRAM markets is expected to grow in 2025, and could reach double digits, because of how quickly markets have adopted the standard, mainly due to the advent of AI hype. from, which brought the need for significant compute power, ultimately driving sales of AI accelerators, where HBM is used as a core component.

Image source: Trendforce

As we move into the era of next-generation AI computing, firms such as AMD and NVIDIA have shown strong interest in new HBM processes, such as HBM3, which have already seen integration. AMD's Instinct MI300X AI Acceleratorand from NVIDIA's camp, the likes of Hopper H200 And Blackwell B100 AI GPUs Inspired by HBM3E memory. Memory manufacturers are also preparing to launch. Next generation HBM4 products by 2025-2026.

This created strong demand and increased the per unit prices of HBM. However, the inefficiencies involved in HBM manufacturing have prevented high-volume production, and rising costs have been unattractive to buyers.

Even so, HBM demand is expected to grow by 200% annually, showing just how big the memory standard will be, provided the AI ​​hype continues its trend.

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