South Korea’s AI chip giants are fighting for a bigger role in America’s AI boom

South Korea's two leading AI chip manufacturers, SK Hynix and Samsung, are currently locked in a fierce competition to secure a more prominent position in the rapidly growing American AI market. These companies control 83% of the global memory chip industry, a crucial component for high-performance AI systems. SK Hynix has traditionally held a significant lead in the high-bandwidth memory market, due to its advanced core technologies and early adoption by Nvidia.

However, Samsung has made considerable gains in recent times, more than doubling its market share over the past year. The company has also forged new partnerships with Nvidia and OpenAI, further solidifying its position in the AI industry. This competition for market dominance is crucial for U.S. AI companies like Nvidia and OpenAI, as control over this critical component can impact their ability to build next-generation AI infrastructure quickly and cost-effectively.

Christopher Miller, an associate professor of international history at Tufts University, noted that technology leadership is still important, but it is now being evaluated alongside capacity, as the memory industry faces constrained production capacity. Both SK Hynix and Samsung are adapting their strategies to remain competitive.

SK Hynix has been deepening its ties with the U.S. AI industry, including a $4 billion advanced packaging facility in Indiana. Samsung, on the other hand, has been steadily building its American presence, partnering with Nvidia on AI-related technologies such as AI-radio access network (AI-RAN) and participating in OpenAI's Stargate project.

Despite their efforts, both companies remain heavily reliant on China, where they have legacy plants and continue to develop new chipmaking tools. However, the ongoing U.S.-China trade tensions have complicated their operations. The elimination of the Validated End User Program in 2025, which allowed chipmakers to export-controlled tools to China without a license, has added to the complexity.

Moreover, the emergence of domestic Chinese semiconductor alternatives poses significant risks to these global leaders. As China advances its domestic technology and faces trade restrictions, the competitive landscape in the AI chip market is becoming increasingly unpredictable.