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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, and compute each category’s share of total component spending per quarter from Q1 2024 to Q4 2025.
We 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.
Data
Component cost estimates are drawn from our AI Chip Components explorer, which builds chip-level bills of materials from financial disclosures, supplier filings, and analyst reports. Four component categories are tracked:
- Memory: HBM stacks (HBM3, HBM3e).
- Logic: advanced-node logic dies (3 - 5nm).
- Packaging: TSMC CoWoS advanced packaging.
- Auxiliary: substrate, power delivery, and other non-logic, non-memory inputs.
See the explorer’s methodology documentation to learn more.
Analysis
Each unit of a component has some cost uncertainty, including the price of an HBM stack, a logic die, or a CoWoS package. We model each chip’s per-component cost with a 90% confidence interval and the share is a ratio of this component’s cost over the total, so both numerator and denominator are uncertain. We show two bounds on the share:
- Range from this component’s cost: the share when this component’s cost lands at its 5th or 95th percentile and the other three components are held at their medians.
- Range when all components vary at extremes: the share when this component sits at one extreme of its CI and every other component lands simultaneously at the opposite extreme of theirs.
Q1 2024:
| Component | Share | Range from this component’s cost | Range when all components vary at extremes |
|---|---|---|---|
| Memory | 52% | 48 - 56% | 42 - 62% |
| Logic | 14% | 12 - 17% | 10 - 20% |
| Packaging | 19% | 14 - 24% | 12 - 27% |
| Auxiliary | 15% | 13 - 18% | 11 - 21% |
Q4 2025:
| Component | Share | Range from this component’s cost | Range when all components vary at extremes |
|---|---|---|---|
| Memory | 63% | 60 - 67% | 54 - 73% |
| Logic | 13% | 10 - 16% | 9 - 19% |
| Packaging | 15% | 11 - 19% | 9 - 22% |
| Auxiliary | 10% | 8 - 10% | 7 - 12% |
Assumptions and limitations
Component costs can vary by contract, supplier, and timing, so our per-chip estimates carry some uncertainty. Our estimates of the number of chips produced each quarter and the chip-type mix also carry uncertainty, both of which propagate into the shares we report.
