May 30, 2024 /SemiMedia/ -- According to reports, Sumit Sadana, executive vice president and chief business officer of Micron Technology, recently stated that HBM memory supply negotiations for 2025 have been basically completed, and Micron Technology's high-bandwidth memory (HBM) sales will climb to several hundred million US dollars in the current fiscal year and then to several billion US dollars in the next fiscal year starting in September 2024.
Regarding the changing trends in the average selling prices of HBM, DRAM and NAND, Sadana said that prices are expected to rise between the second half of 2024 and 2025 due to increased demand for artificial intelligence (AI)-related equipment and data centers.
Sadana pointed out that overall bit demand will improve from the second half of 2024 to mid-2025, and HBM demand will rise significantly. In addition, HBM capacity constraints have a significant impact on total DRAM supply, limiting Micron's ability to expand supply. Memory prices are expected to rise significantly from current levels in the next few quarters, which is why Micron is optimistic about revenue and earnings growth in fiscal 2025.
Sadana said Micron's HBM business will expand significantly between 2024 and 2025. This will help the company's HBM market share grow rapidly. In a specific fiscal quarter in 2025, Micron hopes to achieve HBM market share on par with the entire DRAM market.
Sadana also pointed out that Micron's 12-layer HBM3E is undergoing qualification verification, and once customers adopt it, Micron will put the 12-layer HBM3E into mass production. In addition, by 2025, the industry is expected to gradually transition from 8-layer to 12-layer, and Micron's 12-layer HBM product shipments will continue to increase.
