Samsung Gains Momentum With Next‑Gen HBM4 Chips

Samsung Electronics says customers have praised the competitiveness of its upcoming HBM4 memory, signalling renewed confidence in the company’s AI‑focused semiconductor roadmap.
The remarks come as Samsung works to close the gap with SK Hynix, the current leader in the high‑bandwidth memory market.
Executives expect 2026 to bring tougher conditions but see opportunities in both AI chips and foundry services.

Customer Feedback Boosts Confidence in HBM4

Samsung Electronics reported that customers have responded positively to its next‑generation HBM4 chips, with some saying “Samsung is back,” according to co‑CEO and chip chief Jun Young‑hyun. The company has been in “close discussion” with Nvidia about supplying HBM4, reflecting Samsung’s push to strengthen its position in AI memory. Jun noted that while the feedback is encouraging, further work is needed to enhance competitiveness. His comments were delivered in a New Year address reviewed by Reuters.

SK Hynix offered its own outlook, saying demand for AI chips materialised faster than expected in 2025. CEO Kwak Noh‑Jung said competition is intensifying and that AI demand is now a baseline expectation rather than a surprise. He warned that 2026 will likely be more challenging than the previous year. Continued investment and preparation will be essential to maintain momentum.

Market data from Counterpoint Research shows SK Hynix leading the HBM market with a 53% share in the third quarter of 2025. Samsung followed with 35%, while Micron held 11%. These figures highlight the competitive landscape Samsung aims to navigate with its HBM4 rollout. Both Samsung and SK Hynix saw their shares rise sharply on the first trading day of the year.

Samsung’s stock climbed 7.2%, while SK Hynix gained 4%, outperforming the KOSPI’s 2.3% increase. The strong market reaction reflects investor confidence in the companies’ AI‑related strategies. HBM technology has become a critical component of advanced AI systems. Demand is expected to remain high as generative AI workloads continue to expand.

Foundry Business Positioned for Growth

Samsung’s foundry division, which manufactures chips designed by external customers, is also preparing for expansion. Jun said recent supply deals with major global clients have positioned the business “for a great leap forward.” The company has been working to strengthen its manufacturing capabilities amid rising demand for advanced process technologies. Foundry services are becoming increasingly important as more firms design custom silicon for AI and high‑performance computing.

In July, Samsung signed a $16.5 billion deal with Tesla, further boosting its foundry pipeline. The agreement underscores Samsung’s efforts to diversify beyond memory and consumer electronics. Partnerships with global technology companies are expected to support long‑term growth. The foundry business remains a strategic priority as competition intensifies.

Co‑CEO TM Roh addressed broader challenges facing Samsung’s device experience division. He warned that 2026 may bring greater uncertainty due to rising component prices and global tariff barriers. These pressures affect smartphones, TVs and home appliances. Roh emphasized the need for proactive supply chain diversification.

Samsung plans to optimize its global operations to manage sourcing, pricing and tariff risks. The company aims to maintain a competitive edge by reinforcing core capabilities. Roh said these efforts are essential to navigate shifting market conditions. The strategy reflects Samsung’s broader push to remain resilient across multiple product categories.

AI Demand Reshapes the Semiconductor Landscape

The rapid rise of AI workloads has transformed the memory market. HBM chips have become essential for training and running large‑scale AI models. Samsung’s HBM4 development is part of a wider industry race to deliver faster, more efficient memory solutions. Customer feedback suggests Samsung is making progress in closing the gap with SK Hynix.

Competition is expected to intensify as AI adoption accelerates. Companies across the semiconductor sector are investing heavily in next‑generation memory and compute technologies. Samsung’s efforts to strengthen both its memory and foundry businesses reflect this shift. The company sees AI as a long‑term driver of semiconductor demand.

SK Hynix’s leadership in the HBM market highlights the challenges Samsung faces. However, Samsung’s broader product portfolio and manufacturing scale provide strategic advantages. The company is working to align its operations with evolving customer needs. HBM4 will play a key role in that strategy.

Executives across the industry agree that 2026 will bring a more competitive environment. AI demand is no longer a surprise but a fundamental part of semiconductor planning. Companies must balance investment with operational efficiency. Samsung’s leadership believes it is positioned to compete effectively.