2025 is a crucial year for Samsung, representing a significant juncture in its history. The reflections of Han Jong-Hee, the general co-director of the company, underscore the gravity of the situation: “First of all, I sincerely apologize for the fact that the performance of our actions has not fulfilled your expectations . In the last year, our company has failed to correctly respond to the semiconductor market for artificial intelligence (AI), which is evolving rapidly.” His remarks encapsulate the multifaceted challenges Samsung is currently facing.
Jong-Hee’s statements reveal a central truth: the competitiveness of its semiconductor manufacturing division is crucial for Samsung’s sustained success. However, difficulties are surfacing from multiple fronts. “Our technological advantage has been compromised across our businesses. It is challenging to maintain the status quo, rather than generate disruptive changes,” stated Jay Y. Lee, the company’s president, in a candid internal communication.
Samsung’s Chip Manufacturing Technology: The Path Forward
In the current landscape, Samsung requires its advanced 2 Nm chip manufacturing technology to achieve success. Notably, two companies, a Japanese chip designer specializing in preferred networks (PFN) and a South Korean firm focused on creating neural processing units (NPU), are showing keen interest in integrating this technology. Moreover, Samsung recently signed a $16.5 billion agreement with Tesla to produce chips at its Texas plant. This partnership serves as a vital lifeline for Samsung, providing some relief to the pressures it is currently experiencing. However, the question remains whether these partnerships will suffice to alleviate the stresses facing the company in the long term.
The Loss of Leadership in the Memory Market
Samsung has maintained its position as the leader in the DRAM memory chip industry for over three decades. However, the recent surge in AI technology has dramatically reshaped the competitive landscape. Surprisingly, SK Hynix has overtaken Samsung, leading in both the High Bandwidth Memory (HBM) and DRAM chip markets. DRAM chips are essential components found in numerous familiar devices, including computers and smartphones.
<img alt="The CERN has made an incredible pirouette: its last discovery has the ability to revolutionize quantum computers" width="375" height="142" src="https://i.blogs.es/0c43b9/cern-ap/375_142.jpeg"/>SK Hynix controls 70% of the Integrated HBM MEMORY Circuits market
Although Samsung has controlled around 40% of the DRAM memory manufacturing market, recent changes have been significant. During the first quarter of 2025, SK Hynix has emerged as the leader with an incredible 70% share in the Integrated HBM memory market, confirming its dominance in sectors that demand extreme performance, such as GPUs for AI . Up until recently, Samsung was still a formidable competitor, holding a 34% share of the DRAM market, closely followed by Micron Technology at 30%.
As we look forward, it seems likely that SK Hynix will maintain its leadership in HBM memory, although it may face challenges as the AI hardware market becomes saturated and competition intensifies. Samsung is projected to stabilize around 25% of the market share , while Micron is anticipated to grow to 20% in the coming years. These insights are based on forecasts from analysts at SCMP , providing a glimpse into the evolving dynamics of the semiconductor industry.
Overall, the challenges ahead are vast. Samsung’s inability to adapt swiftly to the demands of the AI-driven market has caused it to lose ground in an industry characterized by rapid innovation and intense competition. The implications of these shifts affect not only the company’s market position, but also its strategic direction in the years to come. As the semiconductor landscape continues to evolve, Samsung will need to reclaim its competitive edge or risk being overshadowed by more agile competitors.
As the semiconductor landscape evolves, it is crucial for Samsung to navigate these challenges effectively by enhancing its manufacturing capabilities and forging strategic partnerships.