Micron plans to double HBM capacity by year-end

Micron’s purchase orders to HBM equipment suppliers are increasing, and the equipment is being delivered to fabs in Taiwan and Singapore. U.S.-based Micron plans to expand its high-bandwidth memory (HBM) production capacity by 2x year over year by the end of this year, adding up to 60,000 wafers per month. The Electronic Times reported that Micron’s purchase orders to multiple HBM production equipment makers are increasing.

If the target is achieved, Micron’s HBM production capacity will reach about 100,000 wafers per month by year-end. Production last year was about 40,000-50,000 wafers per month, and the net increase this year is expected to exceed that figure. HBM is high-bandwidth memory used in AI semiconductors, and as demand from AI semiconductor makers, including NVIDIA, exceeds supply, production capacity itself has become a key area of competition.

Micron is rapidly expanding its ability to supply 12-high HBM4. Most current production consists of 12-high HBM3E, but the share of 12-high HBM4 is expected to rise from 20-30% early in the year to as much as 50% by year-end. 12-high HBM4 will be installed in NVIDIA’s latest AI accelerator, “Vera Rubin,” and Micron said it began mass production of the product in the second quarter of this year.

Micron CEO Sanjay Mehrotra said in June that the company was ramping up mass production of 12-high HBM4 at a speed about 2x faster than 12-high HBM3E, and that cumulative HBM4 shipment revenue had exceeded $1 billion. Micron is one of the world’s three largest HBM makers, but the industry estimates that Samsung Electronics and SK hynix have production capacities 3-4 times higher than Micron’s, with each company reaching approximately 150,000-200,000 wafers per month.

What this changes specifically is the HBM supply available for AI semiconductor companies to choose from. If Micron secures its year-end production capacity as planned, the production gap with Samsung Electronics and SK hynix could shrink to about half its current level, giving Micron an opportunity to increase its market share in a supply-constrained market. However, this outlook is based on explanations and assessments from industry officials, and the investment in Hiroshima, Japan, is still in the preparation stage.