The global AI boom has set the semiconductor industry in motion, but Samsung, once a leader in the memory chip market, struggles to keep up with competitors like SK hynix and NVIDIA. Weak investments in high-bandwidth memory (HBM) technology have put the company at a disadvantage.

While Samsung hesitated, SK hynix invested early in HBM and expanded its market position through close partnerships, especially with NVIDIA. In the September quarter, SK hynix achieved a record operating profit driven by strong demand for HBM chips. According to analysts, SK hynix leads Samsung in both innovation and market penetration.

Samsung reported an operating profit of 9.1 trillion won (approximately 6.1 billion euros) in the third quarter, but analysts attribute the weaker results compared to the previous quarter to its lagging position in HBM. The company plans to start production of HBM4 in the second half of 2025, while SK hynix is significantly further along in development.

Despite a 70% increase in HBM sales in the third quarter and advances in the mass production of HBM3E, Samsung has so far faced difficulties in fully completing NVIDIA's demanding qualification process. NVIDIA, which dominates over 90% of the AI chip market, plays a key role in Samsung's chances for a comeback.

Samsung emphasizes its progress in HBM3E qualification and plans to expand sales in the fourth quarter. Analysts like Brady Wang from Counterpoint Research see potential in Samsung's research and manufacturing capabilities to catch up in the long term. However, success will largely depend on how quickly Samsung is approved by NVIDIA as an HBM supplier.