Micron is reportedly spending to nearly double its monthly output of high-bandwidth memory chips by the end of the year, closing part of the gap with larger Korean rivals SK Hynix and Samsung. The push centers on 12-layer HBM4, the memory type feeding Nvidia's next-generation AI chips, and comes as Micron's stock has climbed 256% in 2026.
Micron is reportedly spending to double its production capacity of high-bandwidth memory by the end of the year, according to South Korean news site Electronic Times. The company is trying to catch up to production capacity at SK Hynix and Samsung Electronics.
Closing the gap on HBM4
The expansion targets 12-layer HBM4, the latest memory generation built to serve chips such as Nvidia's Rubin graphics processing units. Micron's HBM output sat at between 40,000 and 50,000 chip wafers per month last year. The reported plan to add 60,000 wafers per month would put it at about 100,000 wafers per month by year-end. Even at that level, Micron would still trail SK Hynix and Samsung, which maintain monthly HBM capacities in the range of 150,000 to 200,000 wafers, according to Crypto Briefing.
HBM4 is also becoming a bigger share of Micron's mix. The chip type made up roughly 20% to 30% of Micron's total HBM output early in 2026. That share is expected to climb to around 50% by year-end. Cumulative HBM4 revenue crossed the $1 billion mark by June 2026.
Why suppliers are cashing in
Unlike general-purpose DRAM, HBM is faster and more power-efficient, letting memory makers charge higher prices. Jack Gold, principal analyst at J.Gold Associates, told MarketWatch that insatiable HBM demand presents "a major opportunity for suppliers to cash in, since the margins are quite high." Gold said memory shortages don't usually last, so producers want to capture the gains before the cycle turns to oversupply again.
Micron did not respond to MarketWatch's request for comment on the report.
Stock climbs as demand outpaces supply
Micron's stock closed up 6.1% on Friday and has climbed 256% so far this year. D.A. Davidson managing director Gil Luria said AI-driven demand is already more than double current supply and still growing fast, so even the expanded capacity will likely not be enough to meet demand in that timeframe. Micron has also locked in multi-year agreements with customers, giving it revenue visibility that commodity memory rarely offers.
Sources: MarketWatch, Crypto Briefing
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