Samsung, a long-standing heavyweight in the global chip industry, has taken a rare hit in its core business. For the first time in decades, the company has been overtaken in the memory chip market — a space it once dominated — as rival SK Hynix surges ahead on the back of high-bandwidth memory (HBM) demand driven by AI growth.
According to SamMobile, SK Hynix became the world’s top memory chipmaker in Q2 2025, outpacing Samsung in revenue for the first time. While Samsung’s Device Solutions division — which handles DRAM and NAND chips — brought in KRW 21.2 trillion (around $15.18 billion), SK Hynix posted KRW 21.8 trillion (about $15.62 billion) for the same quarter.
The shift has largely been attributed to SK Hynix’s dominance in the HBM market, where it now commands a 62% share, compared to Samsung’s 17%. Micron, interestingly, sits ahead of Samsung with 21%. SK Hynix’s early success in delivering HBM3E chips — a crucial component for AI accelerators used by companies like Nvidia — has helped it pull ahead, while Samsung continues to grapple with yield issues.
Why this matters
Samsung’s semiconductor division has long been a pillar of the company, contributing significantly more to its bottom line than even its smartphone or TV businesses. But as AI computing fuels demand for next-generation memory, the inability to keep up in the HBM segment has become a serious liability.
In DRAM, another important category, SK Hynix now holds a 36% market share, slightly ahead of Samsung’s 34%. It’s a narrow lead, but a telling one — and a clear sign of how the memory landscape is shifting amid the rise of AI and machine learning.
Still, it’s too early to count Samsung out. Industry analysts suggest the worst may be behind the company, as it aggressively cuts prices on its HBM3E chips to attract big buyers like Nvidia. Reports also indicate Samsung is preparing to ramp up HBM4 production in the near future, which could help it regain lost ground.
Tech enthusiast? Get the latest news first! Follow our Telegram channel and subscribe to our free newsletter for your daily tech fix!
For more daily updates, please visit our News Section.
Comments