Micron Technology, long the third-largest player in the global memory semiconductor market behind South Korea’s Samsung Electronics and SK Hynix, is gaining traction by focusing on high-bandwidth memory (HBM). The U.S.-based company, which skipped the HBM3 generation to leap directly to HBM3E, announced the mass production of its 8-layer HBM3E chips early last year, ahead of its Korean rivals. Micron is now reportedly gearing up for the mass production of 16-layer HBM3E chips this year.
Micron has also made strides in the premium smartphone segment, unseating Samsung’s in-house semiconductors to become the primary memory supplier for the initial batch of Galaxy S25 flagship smartphones. This marks the first time a company other than Samsung has taken the top spot for memory supply in its Galaxy series.
“Micron, which traditionally held third place in commodity DRAM, is now achieving significant milestones in custom semiconductors like HBM and low-power next-generation memory,” a South Korean semiconductor industry official said. “Domestic semiconductor companies, which have not seen Micron as a serious threat, are now closely monitoring its progress.”
HBM technology stacks layers of DRAM to deliver superior performance, with more layers corresponding to higher capabilities. Micron currently supplies 8-layer HBM3E chips to NVIDIA for its AI semiconductors, although its market share remains small compared to SK Hynix, which leads with 12-layer HBM3E chips. However, Micron is reportedly working to launch its 16-layer HBM3E chips nearly in tandem with SK Hynix later this year.
“Micron is conducting final evaluations of mass production equipment and has made substantial investments in critical manufacturing tools,” an industry insider said. SK Hynix began preparing for 16-layer HBM3E mass production last November, targeting commercialization in the first half of 2025, while Samsung plans to complete its development of the technology within this year.
Analysts predict Micron’s HBM market share, which was in the single digits last year, could reach double digits by 2025.
Micron is also gaining recognition in low-power DRAM, another key battleground in the semiconductor industry. The company is expected to supply the majority of initial memory chips for Samsung’s Galaxy S25, leveraging its LPDDR5X chips, which are said to outperform Samsung’s offerings in power efficiency and performance.
Micron’s overall DRAM market share is also climbing. According to TrendForce, Micron’s DRAM share rose to 22.2% in the third quarter of 2024, up from 19.6% in the previous quarter. Meanwhile, Samsung and SK Hynix saw slight declines, with shares of 41.1% and 34.4%, respectively.
Historically seen as a symbol of U.S. semiconductor pride, Micron has struggled with limited funding and production capacity compared to its South Korean counterparts. However, the U.S. CHIPS and Science Act of 2022 has enabled the company to significantly ramp up investments.
Last year, Micron secured $6.165 billion in subsidies from the U.S. Department of Commerce, part of its $125 billion investment in facilities in Idaho and New York. Earlier this month, Micron announced plans to build a $7 billion advanced packaging facility for HBM production in Woodlands, Singapore, which will supply NVIDIA and Broadcom. The company also plans to open an HBM production facility in Hiroshima, Japan, by 2027.
Micron’s HBM production capacity is expected to triple from 20,000 wafers per month at the end of 2024 to 60,000 wafers per month by late 2025.
Despite its progress, Micron faces significant hurdles in narrowing the gap with SK Hynix and Samsung. Its production capacity still lags far behind the South Korean giants, which dominate the 2nd- to 4th-generation HBM markets. Additionally, stabilizing mass production processes and improving yield rates remain critical challenges.
“Micron’s HBM facilities won’t become fully operational until 2027, and it still faces issues with yield rates,” an industry insider said.
