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Samsung's Memory Chip Struggle: Falling Behind in the AI Race
7 Aug
Summary
- Samsung was world's leading DRAM maker, but fell behind in advanced HBM chips
- HBM chips became critical for AI, but Samsung was caught unprepared
- Samsung's success or failure in HBM market may impact South Korea as a whole

As of 2025-08-08T00:37:09+00:00, Samsung Electronics, the South Korean tech giant famous for its mobile phones and flatscreen TVs, is facing a major challenge in the memory chip market. While the company was previously the world's leading maker of Dynamic Random Access Memory (DRAM) chips, it has fallen behind in the development of a more advanced chip technology called High-Bandwidth Memory (HBM).
Over the past decade, HBM chips have become increasingly crucial for powering the frenetic race for advanced artificial intelligence. However, Samsung was caught napping as its domestic rival, SK Hynix, teamed up with US-based Advanced Micro Devices to develop these high-performance memory chips. As a result, Samsung is now struggling to catch up in a market that has become a critical component of the AI revolution.
The implications of Samsung's struggle in the HBM market could have far-reaching consequences for South Korea as a whole. As the country's largest conglomerate and a global tech powerhouse, Samsung's success or failure in this space may determine the future trajectory of South Korea's entire technology industry.