Micron begins mass production of AI chips for Nvidia

Micron Technology has begun mass production of its fifth-generation HBM3E chips after completing Nvidia’s quality verification process.

These chips will be used in Nvidia’s upcoming AI accelerator, the Blackwell Ultra.

Micron is the second supplier, after SK hynix, to provide HBM3E chips to Nvidia. Samsung is still in the product qualification stage.

Although Micron holds only 5.1% of the global HBM market—compared to SK hynix’s 52.5% and Samsung’s 42.4%—its entry into Nvidia’s supply chain is expected to strengthen its position.

To boost HBM production, Micron is converting facilities in Taiwan and has announced a US$7 billion investment for a new HBM fab in Singapore, set to operate in 2026. It is also accelerating construction at sites in Idaho, New York, and Japan.

🔗 Source: The Korea Herald

🧠 Food for thought

1️⃣ HBM chips are reshaping the DRAM competitive landscape after decades of stability

SK Hynix’s overtaking of Samsung in DRAM market share (36% vs 34%) marks a significant leadership change in this market 1.

This shift is attributed to HBM’s influence, with SK Hynix controlling 52.5% of the HBM market compared to Samsung’s 42.4%, making HBM performance a key differentiator despite being a smaller segment of overall DRAM volume 1.

Samsung’s historical DRAM market share rarely fell below 40%, highlighting the significance of this competitive realignment 1.

The importance of HBM is emphasized by market projections showing overall memory segment growth of 24% in 2025, outpacing the broader semiconductor industry’s expected 15% growth 2.

This disruption creates an opportunity for Micron to strengthen its position, as evidenced by the narrowing gap between Micron and Samsung (from 16.9 to 9 percentage points).

2️⃣ Micron’s manufacturing expansion represents the largest capacity investment in its history

Micron’s $7 billion investment in its Singapore HBM facility is part of a global expansion that includes converting two facilities in Taiwan and accelerating production in Japan, Idaho, and New York 3.

The Singapore facility alone will create approximately 1,400 jobs initially, with the potential for 3,000 jobs as expansions continue through 2027 3.