TLDR
- Samsung shares reversed decline Wednesday after CTO Song declared HBM4 technology leadership with mass production starting February 2026
- Nvidia confirmed as first HBM4 customer as Samsung regains competitive position lost to SK Hynix during AI chip boom
- ByteDance negotiating with Samsung to manufacture SeedChip AI processor with 100,000-350,000 unit production target for 2026
- Samsung CTO warns of severe memory supply shortage extending through 2026 and 2027 as AI demand accelerates
- TikTok parent plans $22 billion AI spending this year including Nvidia processors and Samsung memory components
Samsung Electronics stock erased earlier losses Wednesday after President Jaihyuk Song declared the company has recaptured memory industry leadership. The CTO made the remarks at Seoul’s Semicon Korea conference.
Song’s comments marked an unusually confident tone for Samsung executives. “We’re now demonstrating Samsung’s true capabilities once again,” he told reporters. The stock reversed course immediately following his statements.
HBM4 mass production launches this month with Nvidia as the initial customer. The partnership represents a major win for Samsung after SK Hynix dominated high-bandwidth memory sales during the AI revolution. Nvidia’s graphics processors require HBM to power artificial intelligence applications.
Samsung lost ground to its smaller rival as AI demand exploded. SK Hynix captured most of Nvidia’s HBM orders while Samsung worked to meet technical specifications. “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 explained.
TikTok Parent Pursues Chip Manufacturing Deal
ByteDance is building an AI chip and negotiating production terms with Samsung. The SeedChip project targets sample delivery by March with at least 100,000 units planned for 2026. Production could expand to 350,000 units depending on demand.
The chips will handle AI inference tasks for ByteDance’s applications. Talks with Samsung cover both manufacturing and memory chip supply. ByteDance disputed report accuracy without providing specifics. Samsung declined to comment on the negotiations.
ByteDance allocated over $22 billion for AI procurement in 2026. The budget includes Nvidia chip purchases and infrastructure investments. The company previously collaborated with Broadcom on advanced processor development.
Supply Shortage Forecast Through 2027
Song predicted tight memory supplies will persist for two years. The warning comes as Samsung and SK Hynix stock prices have rallied since September. Both companies now hold the top two spots among South Korea’s most valuable firms.
AI infrastructure buildout continues driving memory demand higher. Companies worldwide compete for limited HBM supply as they expand machine learning operations. ByteDance’s chip development illustrates industry efforts to secure component access.
Samsung’s HBM4 technology addresses current supply constraints while positioning the company against SK Hynix. The Nvidia partnership validates Samsung’s technical recovery after months of playing catchup. Song’s public confidence suggests internal testing confirmed HBM4 performance meets customer requirements.
The ByteDance manufacturing opportunity adds revenue potential as Samsung scales HBM4 production. Custom chip fabrication complements Samsung’s memory business as tech giants pursue proprietary processors. Multiple customer relationships diversify Samsung’s revenue as AI spending accelerates.
Samsung and SK Hynix shares have climbed on memory shortage expectations. Song’s supply warning reinforces investor views that HBM pricing power will remain strong. The combination of capacity constraints and expanding AI adoption supports favorable market conditions for memory producers.
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