SK Hynix confirmed its dominance in the high-bandwidth memory (HBM) market by announcing record earnings for the second quarter on July 29. The company plans to expand the supply of its sixth-generation HBM, HBM4, in the second half of the year while accelerating the development of next-generation HBM technologies. Despite fierce competition from Samsung Electronics, SK Hynix is determined to maintain its lead in the HBM sector.
In its earnings announcement, SK Hynix stated, "The competitiveness we have built in terms of market launch timing, product performance, mass production yield, quality, and customer trust is not something that can be achieved in a short period." The company noted that HBM4 began mass production in the second quarter and is now approaching the yield and quality levels of its previous generation product, HBM3E.
HBM4 is the latest generation product set to be used in NVIDIA's new chip, 'Vera Rubin.' Samsung was the first in the industry to begin mass production of HBM4 in February, while SK Hynix followed in the second quarter, showing a slight delay. It is expected that SK Hynix will supply 70% of the HBM4 for NVIDIA's Vera Rubin, while Samsung's HBM4 is anticipated to be used in AMD's AI server rack, 'Helios,' intensifying competition between the two companies.
In terms of revenue share, SK Hynix still holds a clear advantage. According to market research firm Counterpoint, the HBM market shares for SK Hynix, Samsung Electronics, and Micron were 69%, 13%, and 18%, respectively, in the first quarter of 2025. By the fourth quarter of 2025, these figures narrowed to 57%, 22%, and 21%. In the first quarter of 2026, SK Hynix maintained its lead with a 58% share, while Samsung and Micron shared the second spot with 21% each.
However, annual trends suggest that Samsung's aggressive pursuit is expected to continue. Market research firm TrendForce forecasts that Samsung's HBM market share will rise from 20% last year to 28% this year, while Micron's share is expected to increase from 20% to 22%. In contrast, SK Hynix's share is projected to decrease from 59% to 50%. Additionally, Samsung's HBM revenue is expected to triple compared to the previous year. Global investment bank UBS has also predicted that Samsung will surpass SK Hynix in HBM bit share for the first time in 2027, with estimates of 41% for Samsung and 39% for SK Hynix.
In this context, SK Hynix aims to maintain its leadership in the next-generation HBM market. The company stated, "We have completed sample supply of HBM4E to customers and are progressing smoothly towards mass production in 2027." It also mentioned that it is developing iHBM technology to address heat issues in next-generation products like HBM5. The company emphasized, "Based on early joint development experiences and long-term cooperation with customers, we believe we can continue to lead the HBM market."
To mitigate market uncertainties, SK Hynix is also expanding its long-term supply agreements (LTA). The company noted, "The LTAs under discussion are based on a five-year term, but we are negotiating various pricing structures to respond to price volatility." It added that measures to ensure compliance, such as purchase agreements and deposits, have secured long-term demand visibility. Negotiations for HBM volumes and prices for 2027 are also progressing smoothly.
* This article has been translated by AI.
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