Market Research Firm "Counterpoint Research" Report
HBM Accounts for 44% of DRAM Sales and 54% of Operating Profit
Analysis of HBM's High Profitability
SK Hynix to Sell 12-Layer HBM3E in Q2
It has been revealed that more than half of SK Hynix's DRAM profits in the first quarter of this year came from high-bandwidth memory (HBM). HBM accounted for over 40% of the company's total DRAM sales.
As the company is currently increasing the proportion of 12-layer HBM3E (fifth generation) products, which are more profitable than the mainstream 8-layer products in the market, the share of HBM is expected to grow even further.
According to the "Q1 2025 Memory Report" recently released by global market research firm Counterpoint Research on June 13, HBM accounted for only 14% of SK Hynix's total DRAM shipments. However, HBM made up 44% of DRAM sales and 54% of DRAM operating profit.
In the first quarter of this year, SK Hynix recorded sales of 17.6391 trillion won, of which DRAM sales accounted for 80% (approximately 14.1112 trillion won). Of this, HBM alone generated about 6.2089 trillion won in revenue. While operating profit by product is not disclosed separately, considering that DRAM accounts for a significant portion of the company's operating profit due to its business structure, it is estimated that at least 3 trillion won of the first quarter's operating profit (7.4405 trillion won) came from HBM.
The reason why HBM accounts for a relatively small share of shipments (in the 10% range) but a high proportion of sales and operating profit is its high profitability. Choi Jungku, lead researcher at Counterpoint, explained, "A single wafer can produce about 1,700 chips of 16Gb DDR5, while it can produce fewer than 600 chips of 24Gb HBM3E. Assuming yields of 90% and 60% respectively, DDR5 can produce about three times more Gb than HBM3E."
He added, "In terms of sales, the price per Gb of HBM3E is more than four times higher than that of DDR5, so revenue per wafer is about 45% higher for HBM3E compared to DDR5."
The share of HBM within DRAM is expected to increase further. Previously, in its first quarter earnings announcement in April, SK Hynix stated that it aims to double its HBM sales this year compared to last year, and that more than half of all HBM3E shipments in the second quarter of this year will be 12-layer HBM3E products. The price of 12-layer HBM3E is known to be about 50 to 60% higher than that of 8-layer HBM3E.
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