
Memory makers are ramping up production capacity for high-bandwidth memory (HBM) due to rapidly surging orders from cloud service providers (CSPs) and developers of processors for artificial intelligence (AI) and high-performance computing (HPC), such as Nvidia, according to TrendForce. The market research firm estimates that annual bit shipments of HBM will grow 105% by 2024.
TrendForce claims that leading DRAM producers like Micron, Samsung, and SK Hynix supplied enough HBM memory in 2022 to keep pricing predictable. Yet, a rapid increase in demand for AI servers in 2023 led to clients making early orders, pushing production limits. TrendForce, the market research firm now projects that aggressive supplier expansion will raise the HBM sufficiency ratio from -2.4% in 2022 to 0.6% in 2024.