AI Demand Drives Sharp Increase in HBM and DDR5 Memory Prices

As AI technology advances, the demand for high-bandwidth memory (HBM) leads to significant price hikes and shifts in production priorities, impacting DDR5 availability.

• HBM prices are set to rise by 5-10% in 2025, with DDR5 expected to see a 15-20% increase due to the booming AI sector.
• Market analysts predict HBM's market share in the DRAM industry to surge, potentially exceeding 30% by the end of next year.
• Memory manufacturers are reallocating resources from DDR5 to HBM production, driven by higher returns and demand from AI applications.
• The entire HBM supply from major producers like Micron and SK Hynix is booked through 2024, with a significant portion of 2025 already allocated.
• Technological enhancements in AI chips are increasing the performance demands on memory systems, leading to more advanced and expensive HBM solutions.

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