May 23, 2024 /SemiMedia/ -- According to reports, Micron Technology has raised its capital expenditure forecast for 2024 to increase investment in the production of high-bandwidth memory (HBM) semiconductors to meet the growing needs of the artificial intelligence (AI) industry.

Micron Chief Financial Officer Matt Murphy said recently that the company will raise its 2024 capital expenditure forecast to about $8 billion from the previous $7.5 billion.

Micron Technology is one of the three major suppliers of HBM chips, which are an important part of the hardware used in artificial intelligence servers. Micron's advanced HBM3E will be used in Nvidia's H200 chip.

Micron has previously stated that HBM chip production capacity has been sold out in 2024, and most of the available production capacity in 2025 has also been allocated. Micron currently offers 8-layer HBM and has begun providing 12-layer HBM samples.

"By fiscal 2025, we expect HBM to become a multi-billion dollar business." Micron COO Manish Bhatia said.