HBM Memory Now Accounts for 63% of AI Chip Component Costs, Epoch Analysis Shows
By
intelkishan
Hard to chew. Probably not worth the jaw work.
Summary
Epoch AI's analysis reveals that high-bandwidth memory (HBM) now accounts for 63% of AI chip component costs, up from 52% in Q1 2024. The breakdown covers four component categories—memory (HBM), logic dies, advanced packaging (CoWoS), and auxiliary components—across AI chips from Nvidia, AMD, Google, and Amazon. The analysis multiplies per-chip costs by estimated quarterly production volumes to track cost share shifts from Q1 2024 onward.
Key quotes
· 3 pulledHigh-bandwidth memory (HBM) accounts for 63% of AI chip component costs, up from 52% in Q1 2024.
For each AI chip designed by Nvidia, AMD, Google, and Amazon, we estimate the per-chip cost of four component categories: memory (HBM), logic dies, advanced packaging (CoWoS), and auxiliary components.
We then multiply those per-chip costs by estimated quarterly production volumes to get total component spending in each category.
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