HBM market projected to grow through 2027 amid rising AI demand

The High Bandwidth Memory (HBM) market is expected to maintain a strong growth trajectory through 2027, driven by increasing investments in AI data centers and the expansion of next-generation AI accelerators and ASICs. Market research firm TrendForce predicts that the average selling price (ASP) for HBM could rise by 121% by 2027, fueled by the increasing proportion of high-value HBM4 products and potential supply constraints during the transition to new technologies.

Major semiconductor manufacturers, including Samsung Electronics, SK hynix, and Micron, are competing to secure HBM4 production capacity. While demand is surging, production remains complex due to the advanced packaging and high-precision manufacturing required. The proportion of HBM within total DRAM wafer input is projected to rise from approximately 18% in late 2025 to 30% by the end of 2027.

In response to rising costs, major tech players are adjusting procurement strategies. NVIDIA is seeking to standardize the manufacturing process for its next-generation custom HBM (NVHBM) by utilizing TSMC’s 3nm process for base dies. Meanwhile, Intel has opted to use low-power DRAM instead of HBM for certain AI inference GPUs to manage costs. Despite these shifts, analysts suggest that the high demand for AI-driven computing will continue to exert upward pressure on memory prices.