The big picture: SK Hynix, one of the largest semiconductor vendors and manufacturers in the world, recently confirmed that the AI boom is far from over. Market prospects remain strong, even under the most conservative projections, as major customers continue spending billions on HBM chips.
High Bandwidth Memory chips, designed to rapidly feed data to powerful AI accelerators, are expected to grow in demand by about 30 percent annually through 2030 – and potentially beyond. According to Choi Joonyong, SK Hynix's business planner for the HBM product line, demand for this specialized type of memory is "very firm and strong" thanks to ongoing infrastructure expansion and sustained venture capital investment.
Speaking to Reuters, Joonyong said there is a strong correlation between HBM demand and the growth of AI ventures. He noted that the 30 percent forecast is actually conservative, factoring in potential constraints such as the AI industry's increasing need for additional power sources.
Cloud giants like Microsoft, Google, and Amazon are continuing to spend heavily on AI systems, and plan to spend even more in the coming years to advance the technology. SK Hynix says this infrastructure build-out will inevitably drive a greater need for HBM chips, with even stronger business results likely in the near future.
HBM technology, which became a JEDEC standard in 2013, uses vertically stacked DRAM dies to deliver significant performance and power efficiency improvements over traditional VRAM. Today, it's a cornerstone of high-performance AI accelerators from Nvidia and other leading vendors, especially in enterprise and data center applications.
SK Hynix, the primary supplier of HBM chips for Nvidia, faces competition from Samsung and Micron, which also claim a share of the market. The South Korean integrated device manufacturer is currently developing the next-generation HBM4 memory standard and exploring alternative technologies, such as SanDisk's High Bandwidth Flash.
Analysts have long predicted a bright future for AI-related silicon products, and SK Hynix's latest outlook reinforces that trend. According to Joonyong, additional revenue growth could come from customization requests by major customers.
Nvidia and other large clients are expected to continue demanding tailored chip designs to enhance performance and optimize power consumption, helping them differentiate their products. In contrast, smaller customers will likely receive a "traditional" HBM design – a one-size-fits-all, standardized approach.
Joonyong and SK Hynix also remain confident in the face of current geopolitical challenges. President Donald Trump recently announced plans to impose 100 percent tariffs on semiconductor products from foreign companies that do not invest in the US. However, South Korean chipmakers such as SK Hynix and Samsung are expected to avoid these tariffs, as both companies are committing to build new manufacturing and research facilities in the country.