South Korean company SK hynix has already managed to overtake its overall larger competitor Samsung Electronics in terms of profits, as it became the main supplier of the fairly profitable HBM memory family for Nvidia’s needs. Now SK hynix’s leadership has been consolidated in terms of revenues as well.
Image Source: SK Hynix
As Counterpoint Research explains, SK hynix became the largest DRAM supplier in terms of revenue, accounting for 36% of the global market in the first quarter. In the HBM segment itself, SK hynix’s share in monetary terms reached 70%. According to analysts’ forecasts, SK hynix will continue to strengthen its position in the DRAM market in monetary terms in the second quarter.
Image source: Counterpoint Research
At the same time, Samsung Electronics is still not that far behind its rival, as it still occupies 34% of the DRAM market in terms of revenue. Micron Technology has secured third place with a share of 25%, which also supplies advanced HBM memory for Nvidia. All other DRAM manufacturers together control no more than 5% of the RAM market. It should be noted that they do not supply HBM, although Chinese manufacturers are attempting to establish its production under the conditions of American sanctions.
Import duties imposed by the US and China will have a minimal impact on the HBM market in the near future. Firstly, because the demand for computing accelerators is very high, and price increases will not significantly reduce it. Secondly, the server market is quite widely distributed geographically, and therefore can adapt to the current situation quite quickly and flexibly. In the long term, if trade barriers remain, the HBM market may suffer due to macroeconomic problems in the form of a recession or depression, as representatives of Counterpoint Research explain.