Samsung electronics eyes turnaround in HBM segment amid AI surge
Tech Desk
Samsung Electronics Company is exploring strategies to reclaim its leadership in the high bandwidth memory (HBM) market, following a recent decline in its position, according to sources familiar with the matter.
The efforts were discussed during the company’s biannual executive-level strategy meetings, held over three days. Led by division heads, the sessions reviewed regional and business-specific challenges, sales strategies, and performance goals for the latter half of the year.
Samsung sees revenue boost from smartphone sales despite chip slump.
A key focus during Wednesday’s meeting—hosted by the semiconductor division—was HBM sales strategies and production schedules, amid soaring global demand fueled by the recent boom in generative artificial intelligence (AI), Yonhap reported.
Samsung’s HBM chips have reportedly failed to pass quality tests by Nvidia Corp., a critical player in the AI hardware sector. This shortfall has prevented Samsung from entering the global HBM supply chain, which is currently led by Nvidia, SK hynix Inc., and Taiwan Semiconductor Manufacturing Co. (TSMC).
Consequently, Samsung was overtaken by rival SK hynix in global DRAM market share during the first quarter of 2024. According to data from global market research firm Omdia, SK hynix’s market share rose to 36.9 percent, while Samsung’s dropped to 34.4 percent.
In response, Samsung is reviewing its plans to begin mass production of its next-generation HBM4 chips in the second half of the year—a move the company hopes will be a game-changer in regaining its competitive edge.
