As the custom semiconductor (ASIC) market focused on specific artificial intelligence (AI) services is rapidly growing, corporations such as Amazon, Google, and Meta are emerging as major customers in the high-bandwidth memory (HBM) market. With the diversification of HBM suppliers that were previously concentrated on AI semiconductor companies like Nvidia and AMD, there are projections that Samsung Electronics, SK hynix, and Micron, which manufacture HBM, will intensify competition in the memory semiconductor industry.
According to industry sources on the 14th, Samsung Electronics, SK hynix, and Micron are expanding their supply of HBM products targeted at ASIC design corporations. Last month, Micron mentioned ASIC platform corporations alongside Nvidia and AMD as four key customers for HBM being shipped in bulk during its earnings announcement. Go Young-min, a researcher at DAOL Investment & Securities, analyzed, "This reflects confidence amid increased demand from ASIC customers."
As the demand for customized semiconductors specialized for AI models operated by Amazon, Meta, and Google has surged, the ASIC market has also seen rapid growth. This is because the prices of products made from general-purpose AI semiconductors like Nvidia and AMD are high, and their performance efficiency relative to power is not sufficient to run AI models. The industry anticipates that next year's ASIC shipments will exceed the supply of Nvidia's AI semiconductors. JP Morgan projected that the global AI ASIC market size will reach about $30 billion (approximately 41 trillion won) this year and grow at an annual rate of over 30%.
Alongside the rapid growth of ASIC companies, memory semiconductor corporations that manufacture HBM are also expanding their supply. SK hynix, the leader in the HBM market, is known to be supplying HBM in bulk to ASIC chips from corporations such as Amazon and Google, including Broadcom. Samsung Electronics is also reported to be supplying 5th generation HBM (HBM3E) to Broadcom and others.
An industry official noted, "The volume supplied to ASICs still accounts for around 10% of the total HBM market, but it is a fact that the supply, which was concentrated on Nvidia and AMD, is rapidly diversifying."
Analyses suggest that competition will intensify starting next year when 'custom HBM' production becomes feasible with HBM4 (6th generation HBM), tailored to the shapes desired by customers. HBM4 can be designed according to the performance requirements of customers, acting as the 'logic die' of HBM. This structure allows for supplying HBM optimized for ASICs designed for specific applications. Choi Yong-ho, a researcher at LS SECURITIES, stated, "From next year, there is an outlook for diversified HBM customers due to the increasing market share of ASIC companies."
Samsung Electronics and SK hynix are also set to intensify their investments in facilities targeting the HBM4 market. Starting in the second half of the year, Samsung Electronics is to bring in facilities to the P4 plant at the Pyeongtaek campus, while SK hynix will commence facility installations at Cheongju M15X to prepare for mass production of DRAM to be integrated into HBM4. Micron is also supplying HBM4 12-layer samples to major customers this month and is entering into chip quality verification. Unlike general DRAM, HBM requires that the supply quantities are confirmed about a year in advance through pre-orders, so it is known that they will supply samples to ASIC companies within the year to begin serious quantity negotiations.