SK hynix has overtaken Samsung Electronics to become the global leader in the DRAM market for the first time, according to a report released on April 9, 2023, by market research firm Counterpoint Research. This marks a significant shift in the semiconductor landscape, with SK hynix capturing 36% of global DRAM market share in Q1 2023, just edging out Samsung's 34%. Micron Technology, based in the U.S., secured the third spot with a 25% share.

This milestone is primarily driven by SK hynix's dominance in high-bandwidth memory (HBM), a high-performance DRAM variant that plays a crucial role in powering artificial intelligence (AI) chips. HBM is a premium product produced by vertically stacking multiple DRAM chips, providing higher bandwidth crucial for data-intensive applications. SK hynix currently controls over 70% of the global HBM market, with a significant portion of its HBM output supplied to Nvidia, a leading AI company. This partnership has significantly boosted SK hynix's profitability, allowing the company to expand its influence in the rapidly growing AI sector.

Samsung, which had held the top position in the DRAM market for over 30 years, now finds itself in second place. The shift comes as demand for HBM chips, driven by AI advancements, has surged, positioning SK hynix ahead of its competitors. The company's success is also attributed to its early and sustained investment in HBM technology. As early as 2013, SK hynix was the first to develop HBM chips, despite initial skepticism regarding their demand and complexity. The company's bold vision for future computing technologies has paid off as AI has gained momentum, positioning SK hynix as a leader in the HBM space.

In its Q1 2023 earnings report, SK hynix posted record sales and profits, with its HBM products accounting for over 40% of its DRAM sales in the fourth quarter of 2022. The company has also set ambitious targets, forecasting an 82% annual growth in HBM demand through 2027, driven largely by AI applications.

The growing influence of AI technology is expected to continue driving demand for HBM chips, with analysts predicting that SK hynix will maintain its lead in the DRAM market for the foreseeable future. The company is set to release its next-generation HBM4 chips in 2025, which are expected to further solidify its position in the market. However, some analysts warn that prolonged trade tensions, particularly those stemming from U.S. tariffs, could eventually pose risks to the expansion of the HBM market.

In terms of DRAM manufacturing technology, SK hynix is also making strides. The company has achieved a yield rate of 80% for its new 1c DRAM process, which is set to be used in the next generation of DDR5 DRAM. This breakthrough is expected to bolster SK hynix's competitive edge over Samsung, which has struggled to improve yields for its 1c DRAM.

While Samsung remains a formidable player in the DRAM market, it now faces significant challenges in maintaining its leadership position as SK hynix continues to push the boundaries of high-performance memory technology. As the market for AI-powered devices expands, the competition between these two semiconductor giants is likely to intensify, with SK hynix poised to retain its lead for the time being.