TLDR
- Samsung’s CTO declared the company has regained leadership in memory with new HBM4 technology, set to begin mass production this month with Nvidia expected as first customer
- ByteDance is developing its own AI chip called SeedChip and is in talks with Samsung to manufacture at least 100,000 units this year for AI inference tasks
- Samsung shares reversed an earlier drop after the executive’s confident remarks about returning to “world-class technology” standards
- Samsung predicts a severe memory supply crunch in 2026 and 2027 as AI infrastructure demand continues to grow
- ByteDance plans to spend over $22 billion on AI procurement this year, including Nvidia chips and potential Samsung memory components
Samsung Electronics shares erased earlier losses Wednesday after a top executive made bullish comments about the company’s position in the high-bandwidth memory market. President and CTO Jaihyuk Song declared Samsung has reclaimed leadership with its new HBM4 technology.
The remarks came during the Semicon Korea conference in Seoul. Song’s confident tone marked a departure from Samsung’s recent cautious messaging. “We’re now demonstrating Samsung’s true capabilities once again,” he told reporters.
Samsung will begin mass production of HBM4 this month. Nvidia is expected to be the first customer for the new memory chips. The development represents a comeback for Samsung after rival SK Hynix dominated Nvidia’s HBM orders during the early AI boom.
The AI revolution triggered massive demand for Nvidia’s graphics processors. Those chips require HBM memory to function properly. SK Hynix took the technological lead and captured most of Nvidia’s business while Samsung struggled to meet specifications.
Recent months have seen Samsung close the gap. The company appears confident its new HBM4 technology will win back market share. “While we may not have fully shown the side of Samsung that responds to customer needs with world-class technology for some time, you can see this as us returning to our original state,” Song said.
ByteDance Enters Chip Manufacturing Race
ByteDance is developing its own AI chip and negotiating with Samsung to manufacture it, according to Reuters. The TikTok parent company aims to receive sample chips by the end of March. Production targets call for at least 100,000 units this year.
The chip project, code-named SeedChip, focuses on AI inference tasks. ByteDance could eventually scale production to 350,000 units. Talks with Samsung also include potential access to memory chips, which remain scarce as companies expand AI infrastructure.
ByteDance denied the report was accurate but did not provide details. Samsung declined to comment. The Chinese company previously worked with Broadcom on an advanced AI processor.
Memory Supply Crunch Expected
Song predicted a severe memory supply shortage in 2026 and 2027. The warning comes as Samsung and SK Hynix have seen their stock prices surge since September. Concerns about memory availability have driven investor interest in both companies.
ByteDance plans to spend more than $22 billion on AI procurement this year. The budget includes purchases of Nvidia chips and other AI infrastructure. The company’s chip development effort reflects broader industry moves to secure supply chains.
Samsung and SK Hynix are now South Korea’s two most valuable companies. Both have benefited from the AI-driven memory boom. Samsung’s HBM4 technology and expected Nvidia partnership could shift competitive dynamics in the high-bandwidth memory market.
The mass production timeline and Nvidia partnership represent concrete progress after months of catching up to SK Hynix.
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