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Introduction

The shortages in memory chips is driven by explosive AI demand and, despite breaking ground on new memory fabs, one shouldn't expect to see meaningful output impacting memory supply until at least 2028. Indeed, experts say that the massive appetite for AI chips, driven by the infrastructure build-out, will cause a pricing apocalypse that will last a decade. As such, according to an article in the WSJ, this exponential rise in memory is all but guaranteed to hit the automotive sector, TVs, and consumer electronics, among many others and memory multiplying in price, implies a cost that manufacturers will be passing on to its customers, assuming there is even any memory available to make the devices.

Not All Memory Is The Same

There are two basic memory types: Random access memory (RAM) that stores data that's currently being used by the processor, while read-only memory (ROM) is for more permanent storage. Within these categories, there are plenty of subtypes.

• One such RAM sub-type is dynamic random access memory (DRAM). A DRAM chip consists of a series of simple memory cells, each containing just one capacitor. A charged capacitor indicates a one, and a discharged capacitor indicates a zero. Because each memory cell is so simple, DRAM is cheap to produce and can hold large amounts of memory in a single chip. However, capacitors leak charge quickly, so DRAM needs to be recharged every few milliseconds, making it very energy-hungry.
• AI computations need fast access to more data than a single DRAM wafer can allow due to their massive data needs and high processor speeds. Luckily, by stacking DRAM wafers vertically and adding some extra electrical connections, you can create high bandwidth memory (HBM), which delivers incredible data retrieval speed for less power. It was first developed by SK Hynix a decade ago for use in video games and only recently came into its own with the advent of generative AI, which requires components that can handle massive amounts of data without lag time. Source
• Only three companies currently manufacture almost the entire global supply of DRAM and HBM: SK hynix (000660.KS) and Samsung Electronics (005930),both of which trade on the Korea Exchange and Micron Technology (MU) which trades on the Nasdaq..

Limited Supply, Massive Demand

With only three companies in play, demand for DRAM and HBM far outstrips supply and that's good for Micron Technology in both the short and the long terms. 

• From a short-term standpoint, the company is already raking in record high revenue, and it announced in December that its entire 2026 calendar year's supply of HBM is already committed, with price and volume contracts complete. 
• The company has committed more than $200 billion to increasing its U.S. manufacturing capacity in the coming years by expanding its existing Virginia facility and opening two new fabrication facilities in Idaho and New York. It also just signed a letter of intent to buy a Taiwanese semiconductor fabrication site for $1.8 billion.
• Micron announced this past Tuesday a $24 billion investment plan to build a new memory chip making facility in Singapore. Wafer output is set to begin in the second half of 2028 in a cleanroom space sprawling over 700,000 square feet (65,000 sqm) Source
• Micron makes 98% of its flash memory chips in Singapore where it is also building a $7 billion advanced packaging plant for high bandwidth memory (HBM), used in artificial intelligence chips, due to start production in 2027.Source

What Is High Bandwidth Memory?

High Bandwidth Memory (HBM), in simple terms, is a certain number of conventional DRAM (direct random-access memory) chips stacked together to achieve greater performance and efficiency. It was first developed by SK Hynix a decade ago for use in video games and only recently came into its own with the advent of generative AI, which requires components that can handle massive amounts of data without lag time.

What Is HBM’s Market Size and Expected Growth Rate?

According to Mordor Intelligence, the HBM market is currently US$3.17B and is forecast to grow at a CAGR of 25.86% between now and 2030 to US$10.02B..

What is HBM’s Global Market Share By Company?

Both SK hynix and Micron are pure-play competitors while Samsung, in addition to being a leading provider of memory chips, also provides semiconductor foundry services and smartphones. Given the aforementioned information it is impossible to provide a comparison of their stock performances.

For now, SK Hynix is the clear leader, with more than half the global market share for HBM; but compatriot Samsung Electronics (SSNLF) and Micron Technology (MU) of the U.S. are racing to catch up, competing not only on technology but on price and other conditions.

Industry tracker Counterpoint Research recently estimated SK hynix will account for 57 percent of the global HBM4 (6th generation) market in 2026, followed by Samsung Electronics Co. with 22 percent and Micron Technology Inc. with 21 percent. Source

Micron's Stock Performance In 2025 and YTD

Micron stock went UP an amazing 239% in 2025 and as of January 30th was UP a further 45.4%.

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