{"slug": "memory-has-grown-to-nearly-two-thirds-of-ai-chip-component-costs", "title": "Memory has grown to nearly two-thirds of AI chip component costs", "summary": "Memory's share of AI chip component costs rose from 52% to 63% between Q1 2024 and Q4 2025, according to an analysis of Nvidia, AMD, Google, and Amazon chips. Total component spending on AI chips grew from approximately $22 billion in 2024 to $52 billion in 2025, with high-bandwidth memory alone accounting for roughly $20 billion of that increase. The rising cost of memory components now represents nearly two-thirds of total chip component spending, reshaping cost structures across the AI hardware supply chain.", "body_md": "Epoch's work is free to use, distribute, and reproduce provided the source and authors are credited under the Creative Commons BY license.\n\n## Learn more about this graph\n\nFor 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, and compute each category’s share of total component spending per quarter from Q1 2024 to Q4 2025.\n\nWe find that memory’s share rose from 52% to 63% over this period, while packaging fell from 19% to 15% and auxiliary components from 15% to 9%. Logic die share stayed roughly constant near 13–14%. Total component spend on AI chips grew from approximately $22 billion in 2024 to $52 billion in 2025, with HBM spending alone accounting for roughly $20 billion of that increase.\n\n### Data\n\n### Analysis\n\n### Assumptions and limitations\n\n## Download this data\n\n## Explore this data\n\nAI chip supply chain consumption data.", "url": "https://wpnews.pro/news/memory-has-grown-to-nearly-two-thirds-of-ai-chip-component-costs", "canonical_source": "https://epoch.ai/data-insights/ai-chip-component-cost-shares", "published_at": "2026-05-24 16:31:29+00:00", "updated_at": "2026-05-25 00:11:59.347123+00:00", "lang": "en", "topics": ["ai-chips", "ai-infrastructure", "artificial-intelligence", "machine-learning"], "entities": ["Nvidia", "AMD", "Google", "Amazon", "HBM", "CoWoS", "Epoch"], "alternates": {"html": "https://wpnews.pro/news/memory-has-grown-to-nearly-two-thirds-of-ai-chip-component-costs", "markdown": "https://wpnews.pro/news/memory-has-grown-to-nearly-two-thirds-of-ai-chip-component-costs.md", "text": "https://wpnews.pro/news/memory-has-grown-to-nearly-two-thirds-of-ai-chip-component-costs.txt", "jsonld": "https://wpnews.pro/news/memory-has-grown-to-nearly-two-thirds-of-ai-chip-component-costs.jsonld"}}