Samsung Loses Ground in HBM Memory Race as SK Hynix Dominates NVIDIA Supply Chain

South Korea's memory semiconductor industry is witnessing a dramatic shift in the competition for High Bandwidth Memory (HBM) supply contracts, with Samsung Electronics losing ground to SK Hynix in the crucial AI chip component market. According to industry sources on August 11, Samsung failed to meet its HBM delivery commitments to NVIDIA, leading the GPU giant to allocate all of its 2025 requirements exclusively to SK Hynix.

This development significantly limits Samsung's potential revenue from NVIDIA even if the company manages to deliver HBM products later this year. Meanwhile, SK Hynix is solidifying its position as the leading HBM vendor and emerging as the primary beneficiary of the AI semiconductor boom that has transformed global technology markets.

For American readers, HBM represents a critical component in AI processing power – think of it as the ultra-fast memory that enables AI chips to handle massive data workloads for applications like ChatGPT and other generative AI services. Market research firms project the HBM market will reach $30 billion in 2025, making it one of the fastest-growing segments in the semiconductor industry.

Samsung's 2-Nanometer Counteroffensive Strategy

Samsung Electronics is responding to its HBM setbacks by accelerating next-generation technology development. The company is working closely with its foundry division to develop the Exynos 2600, the world's first mobile processor using 2-nanometer Gate-All-Around (GAA) process technology.

The Exynos 2600 targets flagship smartphone integration in the first half of 2026, representing Samsung's strategy to regain competitiveness in mobile processors. The company recently secured a $16.5 billion advanced process order from Tesla, demonstrating its foundry capabilities despite memory market challenges.

Samsung's August launch of new foldable phones featuring the AI-enhanced Exynos 2500 processor signals its push into mobile AI markets. Industry analysts interpret this as Samsung's strategy to compensate for HBM market losses through system semiconductor gains, similar to how Intel diversified beyond CPUs when facing AMD competition.

Korean Semiconductors Thrive in Chinese Markets

Both Samsung and SK Hynix continue performing well in Chinese markets, with their semiconductor sales and production subsidiaries recording revenue increases compared to 2023, benefiting from the memory semiconductor market recovery.

However, experts provide a sobering assessment that South Korea's semiconductor industry overall lags behind Taiwan. The technology gap with TSMC in foundry services is particularly concerning, requiring comprehensive competitiveness improvements across the entire semiconductor ecosystem.

SK Hynix plans to continue DRAM and NAND memory operations alongside foundry services while converting its CIS (image sensor) division to focus on AI memory solutions. This business portfolio restructuring reflects adaptation to AI-era market demands, similar to how major U.S. tech companies pivoted their divisions toward cloud and AI services.

Both companies showcased AI-semiconductor fusion technologies at Mobile World Congress 2025 in Barcelona, but market performance varies significantly between the two. This divergence highlights how technical capabilities and customer relationship management increasingly determine success in the rapidly evolving AI semiconductor landscape.

The competition between Samsung and SK Hynix in AI memory markets reflects broader global tensions in semiconductor supply chains, where technological leadership directly translates to geopolitical influence and economic advantage.

Original Korean Article: https://trendy.storydot.kr/archives/670

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