AI BriefingMemory has grown to nearly two-thirds of AI chip component costs
Key point
With HBM's share surging, memory is projected to account for 63% of AI chip component costs.
Details
The component cost structure of AI chips designed by Nvidia, AMD, Google, and Amazon is changing rapidly. The share of HBM (High Bandwidth Memory) is projected to rise from 52% in Q1 2024 to 63% in Q4 2025.
The key figures behind this shift are as follows:
- HBM spending: Surging from about $12 billion in 2024 to $32 billion in 2025
- Total component spending: Rising from about $22 billion in 2024 to $52 billion in 2025 (of this increase, about $20 billion comes from HBM spending)
- Other component shares: Logic Die stays at about 13%, while advanced packaging falls from 19% to 15%, and auxiliary components fall from 15% to 9%
In 2026, cost pressure is expected to intensify further due to memory supply shortages and price increases. Microsoft and Meta have already revised their CAPEX (capital expenditure) upward, citing rising component prices as a key factor.
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