With the 6th generation high-bandwidth memory (HBM4), the market for "custom HBM" chips that manufacturers want is expected to fully blossom, and Taiwanese corporations are increasingly entering the HBM ecosystem. Taiwanese memory semiconductor corporation Nanya Technology has announced the development of custom HBM, while Taiwan's largest fabless (semiconductor design) corporation MediaTek has stated it will supply the design assets (IP) for the "logic die" that serves as the brain of HBM4. Taiwanese foundry (semiconductor contract manufacturing) company TSMC is responsible for manufacturing HBM4 logic dies for SK hynix and U.S. Micron.
The reason the custom HBM market is expected to take off with HBM4 is that foundry processes can be applied to logic dies, which serve as the brains of chips, allowing manufacturers to design and produce as they wish. By optimizing HBM for the characteristics of artificial intelligence (AI) models run by big tech corporations, it can respond to the diverse demands of customers. There is a prevailing forecast that demand for custom HBM, used in the rapidly growing application-specific integrated circuit (ASIC) market focused on performance for AI services, will also increase rapidly.
According to industry sources on the 12th, Nanya Technology has announced it will launch custom HBM in the market next year. To this end, it plans to invest $500 million (about 230 billion won) to establish a new corporation in collaboration with Taiwanese fabless ETRON for custom HBM development. Li Pei-ying, president of Nanya Technology, noted, "We will not be developing HBM3 (4th generation HBM) and HBM3E (5th generation HBM) products aimed at the AI server market, but we will target the custom HBM market." Nanya Technology is the world's 4th largest memory semiconductor corporation, following Samsung Electronics, SK hynix, and Micron. Previously, MediaTek of Taiwan also mentioned it would develop an IP business for custom HBM.
Kang Seong-cheol, a research member of the Korean Semiconductor Display Technology Society, stated, "Considering Nanya Technology's DRAM technology and production capacity, it is not at a level to threaten Samsung Electronics or SK hynix." He added, "From the custom HBM market onward, capabilities in system semiconductors will be important, and since Taiwan has built a strong related ecosystem, it seems they are trying to leverage it for business."
Nanya Technology represents Taiwanese memory semiconductors, MediaTek represents fabless companies, and TSMC represents foundries. The fact that Taiwanese semiconductor corporations, which have not had a presence in the memory semiconductor market, are knocking on the door of the HBM market is significant because competitiveness in 'system semiconductors' is becoming increasingly important in the custom HBM market. To manufacture the logic die that serves as the brain of HBM4 in the form desired by customers, optimized IP and the capability to design chips based on it are essential. Advanced foundry processes are necessary for this manufacturing.
As the custom HBM market opens up, there are forecasts that the HBM market will grow, yet concerns are raised that reliance on system semiconductor corporations will increase. Until now, memory semiconductor corporations have responded to the market with a strategy of maximizing productivity, handling everything from memory semiconductor design to mass production. However, as we enter the era of custom HBM, collaboration with system semiconductor corporations throughout the entire process, including product planning, design, and mass production, has become inevitable. In this case, production expenses are bound to increase, making it difficult to secure profitability.
An official in the semiconductor industry noted, "As the custom HBM market opens, the diversification of demand for HBM will serve as an opportunity for memory semiconductor corporations." However, he emphasized, "Collaboration with system semiconductor corporations during the design and production processes seems inevitable; as a result, the existing method of developing and mass-producing internally will become impossible. If reliance on external companies increases, the difficulty of securing profitability will naturally grow."