Key Points
- Samsung highlighted notable progress with its next-generation HBM4 high-bandwidth memory chips, earning positive feedback from customers.
- The company is in talks to supply HBM4 to major AI players including Nvidia as competition intensifies in the memory chip sector.
- Samsung also pointed to growth in its foundry business and broader 2026 risks like rising component costs and global tariffs.
Samsung Electronics opened 2026 by touting progress on its latest high-bandwidth memory technology, known as HBM4, amid a fiercely competitive AI chip market. In a New Year address, co-CEO Jun Young-hyun said customers have praised the performance and competitiveness of the HBM4 chips. This response signals increasing confidence in Samsung’s ability to challenge rivals in advanced memory supply.
High-bandwidth memory plays a key role in powering artificial intelligence and high-performance computing. Industry leaders have shifted investment toward HBM solutions that can rapidly feed data to AI accelerators and GPUs. Samsung’s HBM4 effort aims to close the gap with SK Hynix, which currently holds a larger share of the global HBM market, and with Micron also active in the segment.
Samsung’s expanded focus on HBM4 comes as it strengthens ties with major AI ecosystem players. In October, the company said it was in “close discussion” to supply its advanced chips to Nvidia, a dominant force in AI hardware. Securing such partnerships would represent a meaningful step in Samsung’s goal to regain ground and capture more market share in the high-end memory arena.
Despite the optimism, Samsung leaders noted that the company still has work ahead to enhance its competitive position. Jun emphasized continued efforts to improve performance and expand supply to meet evolving customer needs. Rapid changes in AI demand have moved memory chips from niche products to foundational technology for data centers and cloud computing infrastructure.
Analysts say this environment creates both opportunity and pressure for memory makers. As artificial intelligence workloads proliferate, demand for HBM4 and similar advanced memory types is expected to grow substantially. This trend has pushed companies like Samsung and SK Hynix to scale production and innovate aggressively to satisfy customers and lock in long-term contracts.
Market reaction to Samsung’s update was positive, with its shares rising on the first trading day of the year. That climb reflected broader investor confidence in the semiconductor sector’s outlook, as memory chips remain a central driver of technology growth in 2026 and beyond.
Alongside memory technology, Samsung also spotlighted gains in its foundry division, which manufactures custom chips for other companies. Recent supply deals with major global customers have positioned the unit for expansion. Foundry growth adds a diversified revenue stream and further ties Samsung into broader chipset ecosystems beyond memory alone.
However, Samsung executives cautioned that 2026 may bring uncertainties. Rising component prices, increasing global tariffs, and supply chain disruptions could present challenges to profitability and operations. To mitigate these risks, the company plans to diversify its supply chains and optimize global operations.
SK Hynix, Samsung’s main rival in memory, echoed the competitive backdrop in its own New Year remarks. Its CEO noted that demand for AI chips has become the base case for business, not an unexpected surge. This normalization of demand reflects how central AI technology has become to semiconductor growth strategies.
Data from Counterpoint Research shows SK Hynix held about 53 percent of the HBM market in the third quarter of 2025, with Samsung at roughly 35 percent and Micron at 11 percent. These shares highlight the hierarchy in the sector while underlining Samsung’s room for growth.
Industry watchers say the memory chip battleground will remain intense through 2026. Leaders will compete to supply next-generation AI accelerators, cloud platforms, and data centers. Achieving strong partnerships and scaling production efficiently will be key to gaining advantage as demand evolves.
For Samsung, positive feedback on HBM4 and an expanding foundry business suggest momentum. But navigating cost pressures and geopolitical trade challenges will require strategic planning. Investors and customers alike will monitor how Samsung balances innovation with operational resilience in the coming months.
