Once you’re out purchasing for seven-megawatt offshore wind generators, you assume Samsung—proper? Not so quick. For many years, few manufacturers carried the clout and innovation that Samsung did—but when the AI wave hit, it was SK Hynix that surfed forward.
Reminiscence Markets: From Monarch to Misstep
Samsung lengthy reigned supreme in DRAM and NAND reminiscence—cornerstones of South Korea’s economic system and Samsung’s income. However Q1 2025 marked a turning level. SK Hynix surpassed Samsung for the primary time ever, grabbing 36% of the worldwide DRAM market versus Samsung’s 34%.
The driving power? Excessive-Bandwidth Reminiscence (HBM)—the coffee-cup reservoir of AI coaching workloads. SK Hynix aggressively focused this area of interest early, delivering HBM3E chips to Nvidia and using the AI demand increase to report income. In Q2 2025, HBM-fueled income pushed SK Hynix’s reminiscence earnings to $9.66 billion, leaving Samsung behind at $8.94 billion.
Samsung’s chip income took a nosedive: a 56% revenue drop in Q2 2025, pushed by delays in HBM qualification, export restrictions, and sluggish AI chip supply.
HBM Tug-of-Battle: Who Has the Cup?
Samsung had lagged in stacking HBM—its underinvestment and hesitation to prioritize a “area of interest” product value dearly. Morningstar summed it up: “HBM has been a really area of interest product … Samsung has not targeted its assets on its growth.
Though Samsung has now ramped up efforts—with HBM3E in mass manufacturing and HBM4 underway for late 2025—the competitor has already outlined the sport.
Foundry Frustrations: Behind the 8-Ball
Samsung’s foundry enterprise—tasked with making chips designed by others—has additionally lagged badly behind Taiwan’s TSMC (~67% market share versus Samsung ~7.7%).
A lifeline emerged: a $16.5 billion multiyear cope with Tesla (2025–2033) to make AI6 chips—utilized in autonomous driving, Dojo programs, and Optimus robots—at Samsung’s Texas plant. This could increase foundry utilization, income, and investor sentiment—and indicators an opportunity to shut the hole with TSMC.
Nationwide Identification in Flux
For South Korea, Samsung is not only a tech large — it is an financial establishment. It shapes the nation’s identification in methods few firms can match. This collapse in AI reminiscence management and foundry relevance appears like a nationwide stumble.
Can Samsung Bounce Again?—Plan for a Reboot
HBM 2.0: Samsung is pushing HBM4 and customized ASIC-integrated reminiscence, aiming for Nvidia qualification and gross sales in H2 2025.Foundry Revival: The Tesla deal, Apple’s upcoming chip orders from the Texas plant, and U.S. funding incentives might increase foundry margins and credibility.Selective Focus: Samsung might profit from specialization—providing tailor-made logic-memory integration for AI {hardware} shoppers like Google, Amazon, or startups.
Knowledge at a Look
MetricSK Hynix (Q2 2025)Samsung (Q2 2025)Reminiscence Income$9.66 B$8.94 BMarket Share (DRAM)36percent33.5percentOperating Revenue Drop—56% decline (~₩4.6 T)Foundry Market Share—~7.7% vs. TSMC ~67percentStrategic Deal—$16.5 B with Tesla
Wrap-Up: Did Samsung Miss the AI Second?
Quick reply? Somewhat—sure. Samsung hesitated on HBM and lagged within the AI race, permitting SK Hynix to plant its flag first and hardest. But it surely is not KO’d but. With bullish bets on HBM4, Tesla (and Apple) tapping its foundry, and constant R&D firepower, Samsung has all of the elements for a high-stakes comeback.
Will Samsung flip this AI fumble right into a comeback story? Solely time—and tech—will inform.
Edited by Rahul Bansal
