Why HBM3E Is Set to Power the Next AI Server Boom

HBM (High Bandwidth Memory) is a stacked DRAM solution where multiple DRAM dies are vertically integrated and connected to a logic die via TSV (through‑silicon‑via) technology, enabling high bandwidth, low power consumption, and a compact form factor, making it the mainstream memory for AI server GPUs.

The latest evolution is HBM3E, an extended version of HBM3 released by SK Hynix, offering up to 8 Gbps transfer speed and 16 GB capacity, with mass production expected in 2024. HBM3E is already used in Nvidia’s 2023‑released H200 accelerator.

According to TrendForce, AI server shipments grew from 860 k units in 2022 to an expected >2 M units by 2026, a compound annual growth rate of 29 %. This surge drives explosive HBM demand; the market size is projected to reach about $15 billion by 2025, growing at over 50 % annually.

SK Hynix, Samsung and Micron dominate HBM supply. TrendForce estimates 2023 market shares of 53 % for SK Hynix, 38 % for Samsung and 9 % for Micron. SK Hynix leads the market by partnering with AMD on the first HBM product and being the first to ship HBM3E.

HBM packaging has mainly evolved through CoWoS (Chip‑on‑Wafer‑on‑Substrate) and TSV. CoWoS integrates DRAM dies on an interposer and connects them to the GPU, shortening interconnect length for higher data rates; TSMC’s CoWoS is used in Nvidia A100, GH200 and other AI chips. TSV provides thousands of vertical connections through the silicon wafer, enabling multi‑die stacking and high bandwidth.

HBM’s key characteristics—high bandwidth, low power consumption and small footprint—have made it the preferred memory for high‑performance AI servers, starting with Nvidia’s 2016 NVP100 (HBM2), followed by V100 (HBM2), A100 (HBM2), H100 (HBM2e/HBM3) and the latest H200 (HBM3E).

References

Compute Competition Sparks Demand for AI Chips, Optical Modules, and Photonic Chips (http://mp.weixin.qq.com/s?__biz=MzUzMzY1NTkwOQ==∣=2247515342&idx=1&sn=3574e8d9413cddd10b734c7dceaae241)

In‑Depth Study of AI Compute Rental Industry (2023) (http://mp.weixin.qq.com/s?__biz=MzUzMzY1NTkwOQ==∣=2247515103&idx=2&sn=80b0ec94ee0ef23b2b88c2b001c97fbb)

Large‑Model Compute: AI Server Industry (2023) (http://mp.weixin.qq.com/s?__biz=MzUzMzY1NTkwOQ==∣=2247514433&idx=1&sn=59c8e986d1d365ca8a35523fd5d861f9)

AI Server Compute Report (2023) (http://mp.weixin.qq.com/s?__biz=MzUzMzY1NTkwOQ==∣=2247514099&idx=1&sn=183e51944ecae12bd5d817faf62b963b)

UCIe Packaging and Heterogeneous Compute Integration (2023) (http://mp.weixin.qq.com/s?__biz=MzUzMzY1NTkwOQ==∣=2247514055&idx=1&sn=62e6db55259bad9d1589e87cee3de47e)

Super‑Chip GH200 Release: AI Compute Twice That of H100 (2023) (http://mp.weixin.qq.com/s?__biz=MzUzMzY1NTkwOQ==∣=2247510974&idx=1&sn=f222d48341ff892c7f5bafc87891e81c)