SK Hynix is the leader in the HBM market, currently holding over 60% market share. The company is also making the fastest progress on the sixth generation HBM product, HBM4, with plans to deliver 12-layer HBM4 samples to NVIDIA by March 2025, and the first batch of products by June 2025, indicating that mass production of 12-layer HBM4 is feasible. This will primarily be used in NVIDIA’s next-generation Rubin chip, which is expected to launch in the second half of 2026.
However, SK Hynix is pricing the 12-layer HBM4 at approximately $540 to $560, which is a 50% increase compared to the previous generation. Although NVIDIA hopes that the other two HBM leaders, Micron and Samsung, will quickly release HBM4 to drive down prices, it appears that SK Hynix has emerged victorious, maintaining its leading position.
So why has the price of HBM4 increased so much?
Firstly, HBM4 features a 2048 I/O bit width, which is double that of HBM3, significantly increasing bandwidth, which is critical for GPUs; otherwise, computational power is rendered useless.
Secondly, the base chips (Base Die, Logic Die) in HBM4 are becoming increasingly important, requiring the integration of logic functions to enhance computational efficiency and reduce power consumption, while providing greater control capabilities. However, major DRAM manufacturers currently lack the process capabilities in this area; for instance, SK Hynix still relies on TSMC for the fabrication of base chips (logic chips).
It is also understandable considering the rapid development of AI; if profits are not pursued now, there may be no opportunities in the future.
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