Magnolia Technology, a globally renowned semiconductor company, is actively expanding into the high bandwidth memory (HBM) market in response to the rapid growth demand brought about by the artificial intelligence boom. According to sources cited by Nikkei Asia, Micron has not only built an advanced high bandwidth memory testing production line in the United States, but also considered producing HBM in Malaysia for the first time to further expand its global production capacity.

The implementation of this strategy has made substantial progress. In October 2023, Micron officially opened its second intelligent (cutting-edge assembly and testing) factory in Penang, Malaysia. The factory initially invested 1 billion US dollars, and then increased its investment by another 1 billion US dollars to expand the second smart factory building to 1.5 million square feet. This measure marks Micron Technology's recognition of Malaysia as an important base for the global semiconductor industry, and also demonstrates its commitment to improving production efficiency and meeting global customer needs.

Gursharan Singh, Senior Vice President of Global Assembly and Testing Operations at Micron Technology, stated after celebrating the company's 45th anniversary and the opening ceremony of its second smart plant that Malaysia is one of Micron Technology's most critical investment hubs. He revealed that the group plans to fully equip new factories in the coming years to improve the productivity of the Malaysian factory and strengthen its assembly and testing capabilities. This will help Micron Technology provide advanced NAND, PCDRAM, and SSD modules to meet the growing market demand for artificial intelligence and electric vehicles.

In recent years, with the explosive growth of artificial intelligence servers and applications, HBM has been rapidly adopted as an important type of storage in the field of high-performance computing. This has driven unprecedented capacity growth in the memory field. According to SEMI's latest quarterly report "World Wafer Factory Forecast", it is expected that DRAM capacity will increase by 9% in 2024 and 2025, with cutting-edge capacity of nodes 5 nanometers and below expected to increase by 13% in 2024, mainly driven by data center training, inference, and the generation of artificial intelligence (AI) from cutting-edge devices.

As one of the world's leading DRAM manufacturers, Micron Technology actively responds to market trends and increases investment in HBM/DRAM. As one of the important customers of Micron HBM, Nvidia has a particularly strong demand for its HBM products. According to market research firm Yole, Nvidia alone is expected to have a demand for HBM exceeding billions of dollars in the coming years. To meet this huge demand, Micron announced that its latest HBM3E product will be used for Nvidia's H200 Tensor Core GPU.

The series of measures taken by Micron Technology demonstrate its confidence in the HBM market and accurate grasp of future market trends. With the continuous development of artificial intelligence technology, HBM, as an important type of memory in the field of high-performance computing, will continue to maintain strong growth momentum. Micron Technology will be able to better meet market demand and promote the company's sustainable development through its layout in the United States and Malaysia.