SK hynix Surpasses Samsung in Quarterly Profit, Driven by AI Memory Chip Demand

SK hynix Achieves Record-Breaking Performance

SK hynix, a leading chipmaker, has surpassed its biggest rival Samsung Electronics in quarterly profit for the first time, according to recent financial reports. The company posted a record 8.08 trillion won ($5.62 billion) in operating profit for the fourth quarter of 2024, marking a 15% increase from the previous year 1

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AI-Driven Growth in High Bandwidth Memory

The stellar performance of SK hynix can be attributed to the strong demand for premium high bandwidth memory (HBM) chips, which are crucial for artificial intelligence (AI) computing. In the fourth quarter, HBM sales accounted for over 40% of the company's DRAM sales, up from 30% in the previous quarter 1

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SK hynix has dominated the HBM market since it began supplying its chips to Nvidia Corp., whose graphic processing units (GPUs) are essential for AI computing. This strategic partnership has positioned SK hynix as a leader in the AI memory chip sector.

Record-Breaking Annual Performance

For the entire year of 2024, SK hynix reported impressive figures:

• Annual revenue: 66.19 trillion won ($46.06 billion), nearly doubling from 2023
• Operating profit: 23.47 trillion won, a significant turnaround from the previous year's loss
• Operating margin: 35% 2

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These results have established SK hynix as the most profitable company in Korea by quarterly operating profit, surpassing even Samsung Electronics.

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Future Plans and Market Outlook

Building on its success, SK hynix has announced ambitious plans for the future:

1. Doubling HBM chip sales in 2025
2. Mass production of next-generation 12-layer HBM4 chips in 2025
3. Development of 16-layer HBM3E chips, with plans to begin mass production of sixth-generation HBM4 in the second half of 2025 1

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The company expects the HBM4 chip to become the dominant force in the AI memory market, offering twice the number of data transfer channels compared to the HBM3e chip, enabling faster data transfer speeds and greater memory capacity.

Competitive Landscape

While SK hynix has taken the lead, competition in the AI memory chip market remains intense. Samsung Electronics, the world's No. 1 memory chipmaker, is working to boost its profit as its HBM has yet to hit the global market. Both companies, along with Micron, are engaged in a race to secure an early lead in the HBM4 chip market 2

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As the demand for AI-specific memory solutions continues to grow, SK hynix's strategic focus on high-value-added products and its ability to meet customer demands promptly have positioned it well for stable profits and continued market leadership in the evolving landscape of AI-driven semiconductor technology.