SK Hynix surpasses Samsung to claim the title of the world's leading memory producer for the first time, largely due to its HBM3 dominance in Nvidia's AI GPU market.
In a significant shift in the global memory market, SK Hynix has overtaken Samsung Electronics to become the world's top memory maker by revenue. This change, primarily due to SK Hynix's early and aggressive focus on high-bandwidth memory (HBM), was first reported in Q2 2025.
SK Hynix's dominance in the HBM market, particularly the HBM3 and HBM3E modules crucial for AI workloads, has made it the primary supplier for AI accelerators, including Nvidia's GPUs driving large language models and generative AI. Nvidia initially used Samsung's GDDR7 memory but later switched to SK Hynix's HBM chips, which offer superior performance for AI processing.
Samsung's position has weakened due to challenges such as export restrictions, shipment delays to key customers like Nvidia, and a 56% fall in its operating profit year over year. In contrast, SK hynix posted 2.6 trillion KRW (~$1.88 billion) in Q2 operating profit, its highest in two and a half years.
The implications for the AI industry are significant. As AI workloads demand increasing memory bandwidth and capacity, SK hynix's leadership in high-performance, high-bandwidth memory positions it as a crucial supplier in the AI hardware ecosystem. This could accelerate AI development by ensuring better memory availability and performance, while intensifying competition that may drive faster innovation and improved memory technologies for AI systems.
The survey by Incruit indicates that students favor SK Hynix due to compensation, engineering focus, and future growth outlook. SK hynix is also investing heavily into vertical integration and packaging technologies, further solidifying its position in the market.
Samsung, however, is not giving up. The company has pledged to invest aggressively in HBM capacity, suggesting a potential comeback in the future. For now, the balance of power has shifted, and SK hynix is setting the pace.
[1] The Verge. (2025, July 1). SK Hynix overtakes Samsung to become the world's top memory maker. Retrieved from https://www.theverge.com/2025/7/1/23063300/sk-hynix-samsung-memory-market-leader-hbm3-hbm3e
[2] CNET. (2025, July 5). SK Hynix takes over Samsung as the world's top memory maker. Retrieved from https://www.cnet.com/tech/computing/sk-hynix-takes-over-samsung-as-the-worlds-top-memory-maker/
- SK Hynix's lead in the AI industry, particularly in high-performance, high-bandwidth memory, has led to its dominance as a crucial supplier for AI accelerators, like Nvidia's GPUs, that drive large language models and generative AI, as these accelerators require the high-bandwidth memory provided by HBM3 and HBM3E modules.
- As Samsung grapples with challenges such as export restrictions, shipment delays, and a decline in operating profits, competing with SK Hynix in the technology sector, especially in the AI memory market, becomes more challenging. Samsung's future investment in HBM capacity could signal a potential comeback, yet for now, SK Hynix's advancements and strategic investments solidify its position as a leading player in the global finance and technology industry.
