A Samsung Electronics executive said on Tuesday that high-bandwidth memory (HBM) is expected to account for nearly 30% of total wafer capacity for DRAM chipmakers next year, up from about 20% currently.

Kim Taewoo, an executive vice president at Samsung Electronics, said that HBM competes with standard DRAM for the same wafer capacity, which means that expanding HBM production could constrain the supply of standard DRAM.

HBM is a critical component for artificial intelligence computing, consisting of vertically stacked memory chips that enable processors to access massive amounts of data at high speeds.

The market is currently dominated by South Korea's SK Hynix and Samsung Electronics, as well as the United States' Micron Technology.