SK Hynix has dethroned Samsung Electronics from the global DRAM market leadership for the first time, ending the rival’s dominance that stretched back over three decades. The Korean memory manufacturer captured 36% of market revenue in the first quarter compared with Samsung’s 34%, according to Counterpoint Research data.
The power shift occurred despite overall DRAM industry revenue declining 5.5% to $27.01 billion. SK Hynix generated $9.72 billion in revenue while Samsung fell to $9.1 billion, representing a sharp 19% quarterly drop for the former leader.
The reversal stems from SK Hynix’s stranglehold on high-bandwidth memory chips crucial for artificial intelligence applications. The company commands approximately 70% of the HBM market, benefiting from surging demand as tech giants race to build AI infrastructure.
Samsung’s struggles intensified due to its inability to directly sell HBM products to China and significantly reduced shipments of high-priced HBM3E following product redesigns. The setback highlights execution challenges as Samsung continues struggling to meet specifications at Nvidia due to yield issues.
This marks the first time SK Hynix has led the global memory market since its foundation in 1983, capitalizing on a decade-long bet on HBM technology that initially showed little commercial promise. The victory comes as SK Hynix projects HBM demand will approximately double compared to last year.
