Samsung and SK hynix Compete for AI Memory Chip Dominance
Samsung's recent AI chip announcement follows a similar announcement from its competitor SK hynix. | Credit: Pool / Getty Images.
Key Takeaways
- Samsung has started mass-producing its latest memory chip designed for AI data centers.
- The announcement comes just a day after SK hynix unveiled a competing solution.
- Data centers are increasingly turning to NAND technology for storage.
In discussions of AI hardware, processors tend to get the most attention, specifically Nvidia’s high-end GPUs and their near-total dominance in the AI data center market. However, memory chips also come into play, providing high-capacity storage to ensure training data is readily accessible.
Focusing on this crucial but often overlooked component of the AI hardware stack, Samsung recently started mass-producing a solid-state drive (SSD) specifically engineered for AI applications.
Data Center Memory Chips
Technically known as a quad-level cell (QLC) vertical NAND (V-NAND), Samsung’s latest chip uses the same underlying technology found in flash drives and SD cards.
NAND flash memory is a type of non-volatile storage technology that doesn’t require power to retain data.
Because they are faster and more compact than magnetic storage devices such as hard disks, NAND drives are often used in consumer devices that need to store and replace large files.
However, there is also a growing market for NAND solutions in data centers, which are prized for their high capacity, endurance, cost-effectiveness, and low energy consumption.
South Korea’s SSD Makers
While Japan’s Kioxia first developed NAND technology in the 1980s, South Korean firms dominate today’s global memory chip market.
In the first quarter of 2024, Samsung and SK hynix were the largest NAND flash memory solutions manufacturers, with Samsung taking a 36.7% share of the global market and SK hynix taking 22.2%.
As the sector evolves to meet the needs of data centers, both firms have focused on developing higher-capacity, more energy-efficient chips.
AI Memory Chip Competition
Commenting on Samsung’s new chip, Head of Flash Products SungHoi Hur said : “Kicking off the successful mass production of QLC 9th-generation V-NAND […] allows us to offer a full lineup of advanced SSD solutions that address the needs for the AI era.”
“As the enterprise SSD market shows rapid growth with stronger demand for AI applications, we will continue to solidify our leadership in the segment,” he added.
Samsung’s announcement comes just a day after SK hynix unveiled its latest AI memory chip PEB110, which is slated for mass production in Q2, 2025.
“With the advent of the AI era, customer demand for high-performance NAND solutions such as SSDs for data centers […] is growing. In line with this trend, the company has developed and introduced a new product with improved data processing speed and power efficiency,” SK hynix said in a statement.
Samsung Fuels Sony’s Blockchain Ambitions With Extended Partnership in Startale Labs
South Korea’s Latest Move to Dominate AI Chip Market, a New Nvidia?
