Samsung Electronics and SK Hynix are intensifying their competition in high-bandwidth memory (HBM) as they enter the production phase of the next-generation HBM4. This shift is positioning the semiconductor equipment industry as a major beneficiary. With Micron and China's largest DRAM producer, ChangXin Memory Technologies (CXMT), also ramping up HBM development and production, demand for related equipment is expected to surge.
According to Swiss investment bank UBS on July 31, Samsung is projected to capture a 41% market share in HBM shipments next year, surpassing SK Hynix, which is expected to hold 39%. While SK Hynix currently leads with a 48% share this year, Samsung's aggressive expansion in HBM4 production and capacity is anticipated to change the landscape in 2027.
The shift in market dynamics is attributed to aggressive capacity expansion. Samsung is significantly increasing its HBM4 production capabilities through substantial equipment investments, while SK Hynix is reportedly reallocating some production lines to meet the demand for high-value general-purpose DRAM, leading to a relative decline in HBM shipments.
As the competition for dominance in next-generation HBM heats up, related equipment investments are also on the rise. Samsung is aggressively expanding its HBM production capacity, particularly in Pyeongtaek, while SK Hynix plans to increase its equipment investments to the upper 40 trillion won range this year to enhance HBM4 production capabilities. Micron is investing 14 trillion won to establish an HBM factory in Hiroshima, Japan, and CXMT is pursuing simultaneous HBM development and DRAM expansion, backed by significant funding from its recent IPO.
HBM4 requires more advanced packaging and high-precision post-processing than the existing HBM3E, leading to an increase in the scale of equipment investments. The demand for post-processing equipment, including TC bonders and inspection tools, is rising, resulting in higher investment amounts as HBM generations evolve.
Domestic equipment manufacturers are already feeling the benefits. Hanmi Semiconductor, the leading TC bonder provider, reported record earnings in the second quarter, driven by increased demand for HBM equipment. Hanwha Semitek is strengthening its focus on the TC bonder and next-generation hybrid bonding markets, while semiconductor inspection equipment firm Techwing recently signed a supply contract worth 10 billion won with Micron.
The competition in HBM is evolving from a technological race to a battle for production capacity. As demand from AI semiconductor clients like NVIDIA and AMD rapidly increases, memory manufacturers are proactively securing equipment to accelerate their production timelines. Last month, SK Hynix placed an additional order for TC bonder equipment worth 42.2 billion won from Hanmi Semiconductor, and Samsung is also expanding its TC bonder suppliers beyond its subsidiary, Semes, to include ASMPT.
An industry insider stated, "Next year, the competition between Samsung and SK Hynix in HBM4 will intensify, with China also joining the expansion efforts, likely leading to a significant increase in equipment orders. The HBM cycle is expected to usher in a new supercycle for the equipment industry."
* This article has been translated by AI.
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