The BareStory
South Korean semiconductor giants Samsung Electronics and SK Hynix reported earnings this week, highlighting how demand for artificial intelligence is reshaping the memory chip market. For the first time, SK Hynix surpassed Samsung in full-year operating profit, recording 47.2 trillion Korean won in 2025 compared to Samsung’s 43.6 trillion won. Analysts attribute this milestone to SK Hynix's dominant position in the high-bandwidth memory (HBM) sector, which supplies essential components for AI processors.
Despite falling behind its rival in annual figures, Samsung reported a record-breaking fourth quarter on Thursday. The company’s quarterly operating profit surged over 200% year-over-year to 20.1 trillion won, while revenue climbed roughly 24% to 93.8 trillion won ($65.58 billion). Samsung stated that its memory business drove these results, achieving all-time highs in revenue and profit due to surging prices and HBM demand. Conversely, Samsung's mobile division saw operating profit fall 9.5% amid intense competition, though its display business profits doubled.
Market estimates indicate SK Hynix held a significant lead in HBM revenue share toward the end of last year. While Samsung operates a diversified business spanning consumer electronics and smartphones, SK Hynix focuses almost exclusively on memory chips. Reports suggest SK Hynix has secured the majority of orders for next-generation products from key AI hardware manufacturers like Nvidia.
Looking ahead, competition is expected to intensify as Samsung expands its memory investments. The company announced plans to begin delivering its latest HBM4 technology this year, with executives forecasting that AI and server demand will continue to rise in the first quarter of 2026. Analysts predict that while SK Hynix is likely to maintain its lead in the HBM4 generation, Samsung is positioned to make material progress in recovering its competitive edge.
How it may affect me
As a U.S. reader:
• You may face higher retail prices for computers and electronics, as Samsung reported that surging prices in the memory sector were a key driver of its recent profits.
• Access to advanced AI tools and services could accelerate as intense competition between SK Hynix and Samsung drives innovation in the essential chips powering U.S. hardware manufacturers.
• You might observe shifts in Samsung smartphone strategies or pricing, as the company’s mobile division deals with intense market competition and declining operating profits.
• The availability of high-quality screens for various devices may improve, given that Samsung’s display business successfully doubled its profits amidst the company’s broader financial recovery.
