In a significant market shift, Samsung Electronics is on track to regain its crown as the world's leading supplier of dynamic random-access memory (DRAM) chips by revenue in the fourth quarter of this year. The South Korean giant is projected to overtake its domestic rival, SK hynix, according to industry sources.
Record Profits Fuel the Comeback
The dramatic turnaround is powered by an impressive financial performance. Samsung is expected to post an operating profit exceeding 18 trillion won ($12.2 billion) for the October-December period, surpassing market expectations. The primary engine of this growth is the company's device solutions division, which oversees its semiconductor business.
This division alone is projected to contribute a staggering 15.1 trillion won to the total operating profit. This figure represents a monumental year-on-year increase of 422% compared to the same quarter in the previous year, signaling a powerful recovery for the chipmaking behemoth.
The AI Memory Chip Battle Heats Up
The shift in rankings marks a pivotal moment in the intense competition for dominance in the memory chip sector, especially for components used in artificial intelligence. Samsung had held the top position in the global DRAM market for an impressive 33 years before losing it to SK hynix in the first quarter of 2024.
That temporary slip was largely attributed to Samsung lagging in the high-bandwidth memory (HBM) chip segment. SK hynix, which pioneered HBM technology back in 2013, has been the undisputed leader in this critical area. HBM chips are essential for advanced AI applications and data centers.
Samsung's Strategic Recovery
Industry analysts point to a dual strategy behind Samsung's rapid resurgence. First, the company has made concerted efforts to narrow the technology gap with SK hynix in the production of advanced HBM chips. Second, the overall market for conventional DRAM products has seen rising prices, fueled by heavy global investment in AI infrastructure like data centers.
This combination of catching up in cutting-edge technology and benefiting from a broader market boom has positioned Samsung for a strong finish to the year. The projected earnings surprise solidifies its path back to the number one rank in the global DRAM supplier revenue ranking for the fourth quarter, pushing SK hynix to second place.
The competition between these two Korean tech titans is set to define the future of memory technology, with AI serving as the central battlefield. Their rivalry will directly impact the global supply chain for everything from smartphones to supercomputers.
