Micron Technology in the U.S. is accelerating production expansion by importing a large number of high bandwidth memory (HBM) production equipment. With both SK hynix and Samsung Electronics increasing their share of HBM, the industry is raising the possibility of intensified HBM volume competition among the three companies this year.
According to the industry on the 14th, Micron has placed a large order for TC bonders, the key equipment for HBM production, from HANMI Semiconductor and Japan's Shinkawa. Micron purchased more than 30 units from HANMI Semiconductor, which is a primary supplier for SK hynix and has proven technical stability, last year, and the purchasing volume in the first half of this year is expected to have surpassed that of last year.
Among major HBM customers, including NVIDIA, it is reported that the most in-demand product, the HBM3E (5th generation HBM) 12-layer product, can only be realized with the TC bonders supplied by HANMI Semiconductor. The Japanese Shinkawa equipment is known to be usable only up to 8 layers. Therefore, it is anticipated that the proportion of HANMI Semiconductor in Micron's TC bonders will increase.
Micron currently has its main HBM production base in Taiwan and is making expansion investments aimed at the fourth quarter of this year. To that end, Micron acquired two fabs from the Taiwanese display company AUO last year. Next year, they plan to produce HBM at factories in Singapore and Idaho, U.S., as well as a factory in Hiroshima, Japan. By 2027, the fab in New York, U.S., will also begin HBM production.
As Micron actively invests in equipment, its production capacity share in the HBM market is expected to expand rapidly. According to market research firm Trendforce, Micron's HBM production capacity was at a level of 20,000 wafers per month at the end of last year. While this is minimal compared to the industry leader SK hynix (averaging 120,000 wafers per month), forecasts suggest it may rise to 60,000 wafers, which is 50% of SK hynix's capacity, within the year.
An industry insider noted, "If the HBM packaging factory already has a cleanroom established, it can easily be remodeled. In the case of the AUO display factory acquired last year, it was modified by removing the panel section and converting it into an HBM line, which has proved that increased HBM production can be achieved in a short time."
As Micron's offensive investment in facilities continues, managing productivity has become crucial for SK hynix to maintain its competitive edge in the HBM business. A source familiar with SK hynix said, "If the volume competition among the three companies intensifies, it is likely that major customers such as NVIDIA, AMD, and Broadcom will demand lower prices for HBM deliveries," adding that "the proportion of 12-layer and 16-layer products, which have high revenue, among HBM products will increase."