SK Hynix and Micron are gaining market share in high-bandwidth memory as Samsung lags in supplying Nvidia's HBM demand surge.

Samsung Electronics, South Korea's largest company, reported a net income of 9.78 trillion won ($7.1 billion) for the September quarter, with its chip division earning 3.86 trillion won ($2.8 billion) in operating profit. The company benefited from strong artificial intelligence and data center server demand during the period.

Despite these solid overall results, Samsung's chip business faced mixed conditions. While AI and data center server demand remained strong, mobile chip sales dipped due to inventory adjustments, creating headwinds in a key segment of the company's semiconductor portfolio.

Samsung's competitive position has faced significant pressure from rivals. SK Hynix recently posted a record 7.03 trillion won in profit, intensifying competitive dynamics in the memory chip market. More significantly, Samsung's delays in NVIDIA's certification for AI memory chips have allowed competitors SK Hynix and Micron Technology Inc to take the lead in high-bandwidth memory, a critical component for data center and AI applications.

This shift in competitive advantage underscores the evolving nature of the semiconductor industry, where certification timelines and product readiness in emerging AI-driven applications can reshape market leadership. As the memory chip market continues to evolve rapidly, Samsung faces mounting pressure to accelerate its development and certification efforts to maintain its market position.