Samsung Targets SK Hynix AI Lead With $73 Billion Blitz

Samsung Electronics Co., Ltd. (OTC:SSNLF) is ramping up its chip ambitions with aggressive spending and new technology pushes to compete more directly with rivals like Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) and SK Hynix in the AI era. Heavy Investment And AI Partnerships Drive Push The company plans to invest over $73 billion this year—more than Taiwan Semiconductor's budget—as it expands capacity and accelerates research into advanced chips. South Korea's largest company plans to raise investment by 22% in 2026 as it seeks to reclaim leadership in AI chips from SK Hynix, now the dominant supplier of high-bandwidth memory to Nvidia Corp. (NASDAQ:NVDA), Bloomberg reported. Samsung is also shifting its focus toward next-generation AI chips and advanced manufacturing processes to meet rising demand from AI workloads. It has already moved ahead by starting commercial shipments of its latest HBM4 chips and deepening partnerships with major players like Nvidia Corp. (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD). Nvidia selected Samsung to manufacture its latest AI chips. Nvidia CEO Jensen Huang said the chips, built using Groq technology, are already in production and expected to ship in the second half of the year. AMD said it is expanding its partnership with Samsung to develop next-generation AI memory solutions, as both companies align with growing demand for AI infrastructure and higher memory performance. Samsung also said it plans to begin mass-producing chips for Tesla Inc. (NASDAQ:TSLA) in the second half of 2027. Still Trails TSMC In Foundry Leadership Despite these efforts, Samsung remains well behind Taiwan Semiconductor in the foundry market. Taiwan Semiconductor holds nearly 70% market share, driven by strong AI demand, while Samsung's share stands at about 7%, highlighting the significant gap it still needs to close. Through increased investment, new product rollouts, and deeper industry partnerships, Samsung is working to strengthen its position in the AI chip race and compete more effectively across both memory and manufacturing segments. Image via Shutterstock