SK Hynix surpasses Samsung in DRAM revenue as Q1 sees 5.5% decline

Samsung’s position in the semiconductor industry faces a new challenge as sk Hynix surpasses it to become the world’s largest supplier of DRAM memory chips. According to the latest data from TrendForce, the global revenue for the DRAM industry in 1Q25 reached US$27.01 billion, showing a 5.5% decrease from the previous quarter. This decline is attributed to inventory adjustments and the impact of the US-China trade tensions.

The dominance of Samsung, sk Hynix, and Micron in the DRAM market remains strong, with these three companies collectively supplying 95% of all DRAM memory chips. The demand for High Bandwidth Memory (HBM) and low power DDR5 chips, particularly in AI data centers, is on the rise. However, the production of these chips has been hampered by supply shortages and a slowdown in PC shipments.

As a response to the challenges faced in HBM production, Samsung has made adjustments to its HBM3e chips. This move by Samsung led downstream players to clear their inventories, resulting in further price declines that have been ongoing since the fourth quarter of 2024.

Looking ahead, PC original equipment manufacturers (OEMs) and smartphone manufacturers are expected to complete their inventory adjustments and increase system production before the 90-day window for US reciprocal tariffs. Consequently, an uptick in shipments is anticipated, along with a potential increase in prices, signaling a positive shift in the semiconductor market.

The DRAM market serves as a key barometer for the overall health of the semiconductor industry, accounting for approximately a quarter of the market. Despite experiencing a 7.1% decline in revenue, sk Hynix managed to secure the top spot with revenue totaling $9.72 billion. In contrast, Samsung saw a significant drop of 19% to $9.1 billion, while Micron recorded a 2.7% revenue increase to $6.58 billion, driven by its expanded HBM3e shipments.

Furthermore, the three major players in the DRAM market have been transitioning to more advanced process nodes for their HBM3, HBM3e, and HBM4 memory chips. This shift has created opportunities for Taiwanese suppliers utilizing mature processes to fill market gaps. Companies like Nanya and Winbond have experienced growth in select LPDDR5 and LPDDR4 DRAM devices, although their market share remains relatively small compared to the industry giants.