Samsung is reportedly dominating DRAM production in the second half of 2025 amidst market uncertainties

In the semiconductor industry, SK hynix recently emerged as the leading DRAM supplier in the first quarter, overtaking Samsung. This shift in ranking was primarily driven by soaring orders for High Bandwidth Memory (HBM), with SK hynix securing the DRAM crown despite a slight decline in revenue compared to the previous quarter. The company’s strategic focus on HBM3e shipments played a crucial role in maintaining average selling prices (ASPs) amidst lower shipment volumes.

On the other hand, Samsung, the long-standing leader in the DRAM market, faced a significant revenue drop in the first quarter, falling to the second position. The decline was attributed to the company’s inability to sell HBM products directly to China and reduced shipments of high-priced HBM3e following a product redesign. As a result, Samsung is expected to realign its production strategy in the second half of 2025 to prioritize profitability over volume in response to market uncertainties and profit pressures.

Despite speculations of Samsung ramping up production to regain its DRAM lead, reports suggest that the company is likely to focus on controlling wafer input at its key DRAM lines in Hwaseong during the second half of the year. This approach indicates a strategic shift towards adjusting output rather than scaling up production significantly. In contrast, SK hynix is reportedly increasing output to meet the rising demand for HBM, particularly for NVIDIA’s upcoming Rubin AI platform, with plans for mass production of 12-layer HBM4 in Q4 2025 at its new M15X fab in Cheongju.

Looking ahead, the DRAM market’s outlook for the second half of 2025 is clouded by uncertainty, with industry experts warning of potential price swings. A report by New Daily suggests that DRAM supply could outpace demand by Q4, leading to fluctuating prices, especially for DDR5 memory modules. This projection indicates a brief price surge in Q3 followed by a decline later in the year, highlighting the dynamic nature of the semiconductor market.

Overall, the semiconductor landscape is evolving rapidly, with SK hynix making significant strides in the DRAM segment and Samsung adjusting its production strategy to enhance profitability amidst market challenges. As technological advancements and market dynamics continue to shape the industry, companies must adapt their strategies to stay competitive and meet the changing demands of the semiconductor market.