SB: HIGH BANDWIDTH MEMORY (HBM) DEMAND IS EXPECTED TO INCREASE BY A FURTHER 77 PER CENT IN 2026 COMPARED TO 9027

On 10 July, according to the Monthly Report on Storage Chips released by the SBG in July, monthly sales reached a record $74.6 billion, an increase of 31.7 per cent in the ring. The Bank indicated that, as demand for artificial intelligence (AI) continued to grow and long-term supply agreements (LTA) negotiations were still ongoing, the market cycle for the storage of chips was “deeper” and structural supply shortfalls would continue at least until mid-2028. Overall, the Bank expects total revenue from the chip storage industry to reach $992 billion for the year 2026. By 2027, this figure is expected to almost double to $1.76 trillion. The Bank noted that the main driving force behind this growth was the high bandwidth memory (HBM), a DRAM dedicated to artificial intelligence accelerators (e.g. GPU in England). The Bank predicts that the demand for HBM will increase by 90 per cent in 2026 to approximately $33.1 billion Gb. Demand is projected to increase by a further 77 per cent to approximately 58.7 billion Gb in 2027. Kim Xian