HBM’s Manufacturing Complexities Mean General-Purpose DRAM Still The Primary Cash Cow For Companies Like Micron; Gross Margins Estimated To Reach 95% In 2027 - Wccftech

While HBM continues to gain importance in datacenters and GPUs for AI inference due to its capacity and bandwidth advantages, recent research reveals that memory manufacturers like Micron are still be... Read original →

The manufacturing intricacies of HBM are undermining Micron’s profitability, revealing that its investment in advanced processes yields lower returns than conventional DRAM. From a tech stack perspective, low yields and high production costs of HBM are weakening its competitiveness in datacenter and AI applications, while DRAM continues to deliver strong margins due to mature processes and economies of scale. Policy-wise, global supply chain realignment is increasing operational costs, especially in key regions like Taiwan, China and Hong Kong, China, where production capacity is vulnerable to geopolitical shifts. Competitors may respond by expanding DRAM output to solidify their market position in mid-tier segments. Over the next 12 to 24 months, unless HBM yield improves significantly, DRAM will remain the core revenue generator, prompting companies to prioritize optimizing existing DRAM lines over aggressive HBM investments. This signals a shift in the semiconductor industry from 'technology-led' to 'efficiency-driven' growth, with high-margin legacy products continuing to serve as the backbone of corporate cash flow.