A Seismic Shift: Samsung No Longer Rules the DRAM Memory Space
In a dramatic reversal of fortune, the DRAM memory space has experienced a top change for the very first time in 33 years. The top dog, Samsung, has been dethroned. Latest statistics by Counterpoint Research show that the first quarter of 2025 experienced a new king sitting on the throne: SK Hynix, yet another South Korean tech giant.
SK Hynix Dominates DRAM Market
Based on the report, SK Hynix dominated 36% of the global DRAM market in Q1 2025. Samsung now has 34%. Micron Technology retains the third rank with a strong 25% market share. The other companies split the remaining 5% pie share.
The HBM Advantage: Key to Hynix's Success
What inspired SK Hynix to such a historic victory? The key is High Bandwidth Memory, or HBM. This expert type of memory is totally integral to today's cutting-edge AI technology. SK Hynix has positioned itself as the head of the pack in the field of HBM, controlling an incredible 70% of all HBM supply.
Most significantly, SK Hynix purchased significant HBM3E memory deals from NVIDIA, where they had significant upper hand. At the same time, Samsung reportedly encountered production hitch. This came in the way of them full utilizing the sky-rocketing HBM market and becoming part of NVIDIA's supply chain with this critical tech.
Samsung Challenges and the Way Ahead
Samsung's lagging behind in the HBM game is further exacerbated by delays in achieving their HBM3E certification. On top of that, they are currently racing against time to expedite the development of HBM4. They aim to release it in mid-2025 – six months earlier than its previously scheduled release. It's a tall order as Samsung is attempting to catch up once more in this pivotal area.
Will Hynix Remain Number One?
Market analysts anticipate SK Hynix to remain in its leadership position at least through the second quarter of 2025. Demand for HBM memory is anticipated to remain strong in the near future with the unrelenting rise in AI. However, experts also caution against potential long-term dangers to the sector. Problems like ongoing trade tensions and structural imbalances can potentially soften the growth in the segment or even lead to market chaos in the future.
The DRAM industry has only recently undergone a dramatic shake-up. It brings an era to a close and opens a new one. It is yet to be seen how Samsung will react to this challenge and whether SK Hynix will be able to cement its new leadership in the highly competitive realm of memory technology.
