American Made Advocacy: Smart Policies Can Ensure AI Data Centers Are Secure
Beyond the Board: Early Engagement Means Faster Prototyping for Defense Programs
Defense Speak Interpreted: The Autonomous Plane Battle—Skyborg Vs. Loyal Wingman
HBM Prices to Increase by 5–10% in 2025, Accounting for Over 30% of Total DRAM Value
May 6, 2024 | TrendForceEstimated reading time: 1 minute
Avril Wu, TrendForce Senior Research Vice President, reports that the HBM market is poised for robust growth, driven by significant pricing premiums and increased capacity needs for AI chips. HBM's unit sales price is several times higher than that of conventional DRAM and about five times that of DDR5. This pricing, combined with product iterations in AI chip technology that increase single-device HBM capacity, is expected to dramatically raise HBM’s share in both the capacity and market value of the DRAM market from 2023 to 2025. Specifically, HBM’s share of total DRAM bit capacity is estimated to rise from 2% in 2023 to 5% in 2024 and surpass 10% by 2025. In terms of market value, HBM is projected to account for more than 20% of the total DRAM market value starting in 2024, potentially exceeding 30% by 2025.
2024 sees HBM demand growth rate near 200%, set to double in 2025
Wu also pointed out that negotiations for 2025 HBM pricing have already commenced in 2Q24. However, due to the limited overall capacity of DRAM, suppliers have preliminarily increased prices by 5–10% to manage capacity constraints, affecting HBM2e, HBM3, and HBM3e. This early negotiation phase is attributed to three main factors: Firstly, HBM buyers maintain high confidence in AI demand prospects and are willing to accept continued price increases.
Secondly, the yield rates for HBM3e's TSV currently range only from 40% to 60%, with room for improvement. Moreover, not all major suppliers have passed customer qualifications for HBM3e, leading buyers to accept higher prices to secure stable and quality supplies. Thirdly, future per Gb pricing may vary depending on DRAM suppliers' reliability and supply capabilities, which could create disparities in ASP and, consequently, impact profitability.
Looking ahead to 2025, from the perspective of major AI solution providers, there will be a significant shift in HBM specification requirements toward HBM3e, with an increase in 12Hi stack products anticipated. This shift is expected to drive up the capacity of HBM per chip. According to TrendForce predictions, the annual growth rate of HBM demand will approach 200% in 2024 and is expected to double in 2025.
Share on:
Testimonial
"Your magazines are a great platform for people to exchange knowledge. Thank you for the work that you do."
Simon Khesin - Schmoll MaschinenSuggested Items
Nortech Systems Incorporated Earns AS9100 Certification for Monterrey, Mexico Facility
11/04/2025 | BUSINESS WIRENortech Systems, Incorporated, a leading provider of design and manufacturing solutions for complex electromedical devices and electromechanical systems, announced that its Monterrey, Mexico, facility has achieved AS9100:D certification.
On the Line With… Ultra HDI, Episode 8: “Materials, Up and Coming Capabilities,” Now Available
11/05/2025 | I-Connect007I-Connect007 is excited to announce the release of the eighth episode of its 12-part podcast series, On the Line With… American Standard Circuits: Ultra HDI. In this episode, “Materials, Up and Coming Capabilities,” host Nolan Johnson sits down with resident expert John Johnson, Director of Quality and Advanced Technology at American Standard Circuits, to discuss how material selection influences the Ultra HDI (UHDI) manufacturing process.
Aircraft Wire and Cable Market to surpass USD 3.2 Billion by 2034
10/30/2025 | Global Market Insights Inc.The global aircraft wire and cable market was valued at USD 1.8 billion in 2024 and is estimated to grow at a CAGR of 5.9% to reach USD 3.2 billion by 2034, according to recent report by Global Market Insights Inc.
The Training Connection Continues to Grow with Addition of Veteran IPC Trainer Bill Graver
10/30/2025 | The Training Connection LLCThe Training Connection, LLC (TTC-LLC), a premier provider of test engineering and development training, is proud to announce the addition of Bill Graver to its growing team of industry experts. A respected professional with more than 35 years in electronics manufacturing, Bill joins as an IPC Master Trainer, bringing a wealth of hands-on experience in PCB testing, failure analysis, and process improvement.
I-Connect007 Welcomes New Columnist: Leo Lambert, EPTAC
10/30/2025 | I-Connect007I-Connect007 is excited to announce a column by Leo Lambert, an industry veteran with 40 years of experience, an award winner, and technical director at EPTAC. This column, Learning With Leo, will explore the evolution and related challenges of electronics product assembly, especially as it relates to training.