Seoul, Dec 2 || Samsung Electronics, a pioneer in the semiconductor industry, is facing significant challenges as the global memory market shifts toward artificial intelligence (AI)-focused technologies.
The company's three-decade reign as the world's leading memory chipmaker is under pressure, largely due to its slower response to the growing demand for high bandwidth memory (HBM), a critical component in AI accelerators, reports news agency.
The tech giant entered the semiconductor business in December 1974 after acquiring Korea Semiconductor under the vision of late Chairman Lee Kun-hee and quickly established itself as an industry leader.
In 1983, the company developed its first 64-kilobyte DRAM, paving the way for breakthroughs like the industry's first 64-megabit DRAM in 1992 and the world's first 1-gigabit DRAM in 1996.
Over the years, Samsung Electronics maintained its dominance through innovations such as the 20-nanometer (nm) DRAM in 2011, 10nm-class DRAM in 2016 and the world's first mass production of 3nm foundry chips in 2022.
These innovations and world-first titles enabled Samsung Electronics to hold a commanding share in the DRAM market for 30 years.
However, a seismic shift sparked by the AI revolution has disrupted the traditional memory market, with demand moving from general-purpose DRAM to AI-optimized chips like HBM.
Samsung Electronics has failed to prepare for the rapidly shifting trend and invested less in HBM than its competitors.