HBM Technology Evolution
HBM (High Bandwidth Memory) uses TSV (through-silicon via) technology to stack multiple DRAM dies vertically, connecting to the GPU or AI chip through a wide 1024-bit silicon interposer to deliver memory bandwidth far beyond conventional DDR.
HBM3E (today's mainstream): 1.18TB/s of bandwidth per stack, 36GB of capacity in a 12-high stack, and roughly 30% better power efficiency than HBM3. It primarily pairs with NVIDIA H200 and AMD MI325X.
HBM4 (mass production in 2026): per-stack bandwidth expected to exceed 2TB/s, 48-64GB of capacity in a 16-high stack, and a customizable base logic die that lets AI chip vendors integrate their own functions into HBM's base layer. It is expected to ship first with NVIDIA's B300 series.
Supply Chain: An Oligopoly and the Fight for Capacity
The global HBM market is controlled by three players: SK hynix (roughly 50% share), Samsung (roughly 40%), and Micron (roughly 10%). Because HBM manufacturing is extraordinarily complex — requiring TSV etching, wafer thinning, hybrid bonding, and other advanced packaging techniques — the technical barrier facing new entrants is very high.
In 2026, the three vendors' HBM capacity has been locked up under long-term contracts by NVIDIA, AMD, Google, and other AI chip giants. HBM supply is far tighter than commodity DRAM, with lead times running 6-9 months and opaque pricing (it is typically sold bundled with the AI chip).
Impact on the DRAM Industry
HBM's high profitability (gross margin estimated at 50-60%, well above the 30-40% of commodity DRAM) is drawing the three vendors to shift more capacity toward HBM production. Because an HBM DRAM die is 2-3 times the area of a standard DDR5 die, HBM capacity expansion directly crowds out DDR5 and LPDDR5 supply, further tightening the overall DRAM market.
Opportunities for Distributors
Although HBM itself ships mainly through direct vendor supply to AI chip companies, the demand explosion reverberates across the entire memory value chain: tight supply and demand in DDR5 server memory creates arbitrage room for distributors; rapid AI server deployment drives enterprise SSD demand; and HBM test and validation consume large quantities of test equipment and auxiliary memory components.
JH Semiconductor continuously tracks HBM technology and market dynamics, offering customers comprehensive memory and storage solutions across the AI compute supply chain.