Micron makes aggressive HBM push to challenge Samsung, SK

Micron Technology, long the third-largest player in the global memory chip market behind Samsung Electronics and SK hynix, is mobilizing its full organizational capabilities to challenge the two Korean chipmakers in the race for dominance in the high-bandwidth memory market.

The US-based chipmaker has passed Nvidia’s quality verification process for its fifth-generation HBM3E products, according to industry sources on Sunday. Micron has reportedly commenced mass production of these chips for use in Nvidia’s next-generation AI accelerator, the Blackwell Ultra.

Micron announced during its earnings call last month that it had started volume production of the 12-layer HBM3E chips and was focused on increasing yield and capacity. The firm added that the majority of its HBM shipments in the second half of the year would consist of the 12-layer variant.

The milestone makes Micron the second supplier after SK hynix to provide 12-layer HBM3E chips to Nvidia, while Samsung is still undergoing qualification tests for the same product.

Micron remains the smallest player in the HBM market, but by penetrating Nvidia’s previously exclusive supply chain, the company’s influence is expected to grow significantly.

According to market tracker TrendForce, SK hynix commanded 52.5 percent of the global HBM market in 2024, followed by Samsung with 42.4 percent and Micron with just 5.1 percent.

Shifts in broader DRAM market share are already being observed. According to Counterpoint Research, SK hynix overtook Samsung for the first time in the first quarter, capturing 36 percent of the global DRAM market, powered by robust HBM sales. Samsung followed with 34 percent, while Micron accounted for 25 percent.

The gap between Micron and Samsung narrowed significantly, from 16.9 percentage points in the fourth quarter last year to 9 percentage points in the first quarter this year -- attributed largely to Micron’s growing shipments of 8-layer HBM3E products to major clients, including Nvidia.

Micron has declared its ambition to push its HBM market share into the 20 percent range this year. It is ramping up production capacity, converting two newly acquired AU Optronics facilities in Taiwan into HBM-ready DRAM plants. These sites are expected to start operating within this year.

Additionally, Micron announced a $7 billion investment to build a new HBM fab in Singapore, aiming for operations to begin next year. Expansion efforts are also underway in Idaho and New York, and its under-construction Hiroshima facility in Japan -- initially slated for a 2027 launch -- is set to open a year earlier, with extreme ultraviolet equipment to be introduced as early as June.

Micron is also moving aggressively in equipment procurement and talent acquisition. The company is reported to have secured more thermal compression bonders -- essential in HBM production -- from Korea’s Hanmi Semiconductor in the first quarter alone than it did throughout 2024.

Efforts to recruit Korean semiconductor talent are also intensifying. Micron is said to be actively seeking engineers for its operations in Japan and Taiwan, with industry sources noting that such an assertive recruitment drive in Korea is unprecedented for the US firm.

“Micron’s limited HBM market share so far can be largely attributed to insufficient capacity,” said an industry official, who requested anonymity. “But with its recent aggressive expansions, we could see a major shake-up in market dynamics starting this year.”

Meanwhile, SK hynix is accelerating construction of its new HBM facility -- the M15X fab in Cheongju, North Chungcheong Province -- and has started reinforcing its workforce. EUV equipment is also expected to be installed there soon.

Industry watchers are eyeing a potential rebound by Samsung in the latter half of the year. The tech giant is reportedly in the final stages of quality testing its HBM3E with Nvidia, and once certified, could begin ramping up shipments.