Seoul: Samsung Electronics Co. is on track to reclaim its position as the leading global supplier in the dynamic random-access memory (DRAM) market by revenue for the fourth quarter, surpassing its domestic competitor SK hynix Inc., according to industry sources.

According to Yonhap News Agency, the South Korean technology powerhouse is anticipated to report an operating profit exceeding 18 trillion won (approximately US$12.2 billion) for the October-December period, surpassing market forecasts. Samsung's device solutions division, responsible for its semiconductor operations, is projected to contribute 15.1 trillion won to the total operating profit, marking a significant 422 percent increase from the previous year.

This unexpected earnings surge is expected to position Samsung as the top global DRAM supplier for the fourth quarter, thereby relegating SK hynix to second place. Samsung had held the leading position in the DRAM market for 33 years before losing it to SK hynix in the first quarter due to competition in high bandwidth memory (HBM) chips.

SK hynix pioneered the development of HBM chips, essential for artificial intelligence (AI) applications, in 2013, and has maintained leadership in the global HBM market since then. Industry analysts attribute Samsung's recent resurgence to its efforts to close the technology gap with SK hynix in HBM, coupled with the rising prices of conventional DRAM products fueled by increased investment in AI infrastructure, such as data centers.

The average price of 8-gigabit DDR4 for computers rose by 15.7 percent month-on-month to $8.1 in November, based on data from market research firm DRAMeXchange. Prices have increased sixfold since March, when they were $1.35, and are projected to rise by up to 50 percent in the fourth quarter compared to the previous three months.