August 13, 2025 /SemiMedia/ — The global silicon wafer market faces potential supply pressure as high-bandwidth memory (HBM) demand accelerates, even though wafer shipments remain flat, according to a new report by the Semiconductor Equipment and Materials International (SEMI).

SEMI said AI-related semiconductor demand remains strong, with some high-value production lines running near full capacity. However, stagnant wafer shipments reflect a structural shift in fab operations. Increasing process complexity and stricter quality control have extended wafer processing times, limiting output despite unchanged equipment count and utilization rates.

Data from SEMI shows that between 2020 and 2024, wafer fab cycle times grew at a compound annual rate of 14.8%. Meanwhile, capital spending per wafer area has surged more than 150% since 2020, but these investments have not directly boosted capacity, instead translating into longer processing times.

The report highlighted that HBM now accounts for 25% of DRAM output, a major turning point for silicon wafer demand. Each bit of HBM consumes over three times the wafer area of standard DRAM. As HBM penetration continues to rise, the risk of tighter wafer supply in the coming years is growing.