Samsung Regains Ground in HBM Market, Challenging SK Hynix Dominance
The global memory market is undergoing a significant shift as Samsung Electronics has made substantial strides in high-bandwidth memory (HBM) technology, overcoming previous setbacks and challenging SK Hynix’s recent dominance. This resurgence comes after a period where SK Hynix capitalized on early advancements in HBM3, becoming a primary supplier for key players like Nvidia.
From Complacency to Comeback: A Timeline of Events
In 2023, Samsung was relatively complacent even as SK Hynix began supplying HBM3 to Nvidia, increasing its market share. This led to concerns about a potential “Samsung semiconductor crisis,” with the company losing its leading position in DRAM for the first three quarters of last year. Though, Samsung has since taken decisive steps to regain its competitive edge.
A turning point came in September 2024, when Samsung’s HBM3E (5th generation) 12-layer product successfully passed Nvidia’s quality testing. Further solidifying this progress, Nvidia successfully delivered HBM4 (6th generation) for the first time in the industry on February 12th, 2026.
Addressing Past Missteps and Embracing Innovation
Samsung’s initial hesitation with HBM stemmed from concerns about production difficulties, low yields, and lower profit margins compared to general-purpose DRAM. During a memory downturn in 2019, the company reduced investment in HBM, a decision that proved to be a misjudgment with the rise of AI and the subsequent demand for AI accelerators equipped with HBM following the launch of ChatGPT in November 2022.
Recognizing these errors, Samsung shifted its strategy in early 2024, focusing on improving the yield of its HBM3E 12-layer product and accelerating the development of HBM4. A dedicated task force of 100 engineers was assembled to address the HBM3E challenges, while approximately 300 engineers were assigned to the HBM4 development team.
Leadership Changes and Technological Advancements
The turnaround was further propelled by leadership changes in May 2024, with Jeon Young-hyun taking the helm of the DS division. He implemented changes to foster a culture of transparency and rigorous debate, addressing previous issues of false reporting.
A key technological advancement involved redesigning the core DRAM used in HBM3E. While competitors utilized 10-nanometer 5th generation DRAM, Samsung initially used 4th generation DRAM. To improve performance, Samsung committed to redesigning its 4th generation DRAM for the HBM3E 12-layer, even if it meant temporarily sacrificing sales in the first and second quarters of 2025.
Collaboration with Nvidia and Future Outlook
Close collaboration with Nvidia was crucial to Samsung’s success. Executives from Samsung’s HBM team made frequent visits to Nvidia’s Silicon Valley headquarters to operate directly with customers and address their needs. This collaborative effort culminated in Samsung passing Nvidia’s qualification test for the HBM3E 12-layer in September 2024.
With the successful delivery of HBM4, Samsung is poised to reclaim its position as a leading force in the memory market. The company’s commitment to innovation, coupled with its renewed focus on HBM technology, signals a strong return to form.
As of February 17, 2026, SK Hynix continues to be a major player in the HBM market, particularly benefiting from its early dominance in supplying HBM3 for Nvidia’s AI GPUs. Tom’s Hardware reports that SK Hynix’s success is largely attributed to its HBM3 dominance for Nvidia’s AI GPUs.
High Bandwidth Memory (HBM) is a computer memory interface for 3D-stacked synchronous dynamic random-access memory (SDRAM).