AI BriefingMemory's Share of AI Chip Component Costs Rises to About Two-Thirds
Key point
HBM's share of AI chip component costs is projected to surge to 63% by the end of 2025.
Details
HBM (High Bandwidth Memory)'s share of total AI chip component costs is projected to rise sharply from 52% in Q1 2024 to 63% in Q4 2025. This figure is calculated based on the production volume of AI chips designed by Nvidia, AMD, Google, and Amazon.
HBM-related spending is expected to surge from about $12 billion in 2024 to $32 billion in 2025, growing faster than any other component. Meanwhile, the share of other components is changing as follows:
- Logic dies: remains steady at about 13%
- Advanced packaging (CoWoS): decreases from 19% $ightarrow$ 15%
- Auxiliary components: decreases from 15% $ightarrow$ 9%
As memory supply shortages and price increases continue, HBM's share is expected to rise even further in 2026. As a result, major hyperscalers such as Microsoft and Meta have significantly raised their 2026 capital expenditure (Capex) plans to reflect rising component prices.
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