The Korea Times reported on its front page that SK Hynix has broken through Samsung Electronics' seemingly impregnable fortress. Last year, it first surpassed Samsung Electronics in annual operating profit and opened a new path in the memory market. This achievement was made 13 years after SK Group acquired Hynix Semiconductor in 2012. However, Samsung Electronics has been stagnant for some time, and recently announced a counterattack. The competition between the two companies for the "memory throne" is expected to intensify further.

SK Hynix announced on the 28th that its sales for the period from October to December last year reached 32.8267 trillion won, and its operating profit reached 19.1696 trillion won. Compared to the same period last year, sales increased by 66.1%, and operating profit increased by 137.2%. Looking ahead to the entire 2025, sales grew by 46.8% compared to the previous year, reaching 971,467 billion won, and operating profit increased by 101.2%, reaching 472,063 billion won. This number far exceeds the previous record of 2024 and sets a new annual record. Samsung Electronics announced preliminary financial results on the 8th, stating that its sales were 332.77 trillion won and operating profit was 43.53 trillion won last year. Although SK Hynix did not achieve the quarterly operating profit exceeding 20 trillion won as expected in the market, its annual operating profit exceeded its competitor Samsung.

The symbolic significance of this achievement cannot be ignored in the industry. This is because Samsung Electronics' operating profit includes not only semiconductors (DS), but also smartphone (MX) and home appliance (CE) departments, while SK Hynix achieved success in a single department centered around storage semiconductors.

The key factor behind its excellent performance is high-bandwidth memory (HBM). HBM sales more than doubled compared to last year. According to market research company Counterpoint Research, SK Hynix's HBM market share was 57% during the July to September period last year.

◇HBM is driving, DRAM is accelerating... SK Hynix's "super difference"

This gap is more than twice that of Samsung Electronics, which ranks second at 22%. SK Hynix currently actually monopolizes HBM3E (fifth generation), which is installed in NVIDIA's latest AI accelerator.

Moreover, with the continued rise in prices of general-purpose DRAM, SK Hynix is analyzed to have seen an increase in profits from non-HBM product lines. General-purpose DRAM is a product used in personal computers, mobile devices, and general servers. According to data from DRAM Exchange, the average fixed transaction price of PC general-purpose DRAM products (DDR4 8Gb) in December last year was $9.3, an increase of 15% from the previous month. As memory manufacturers focus on producing high-value-added HBM, the production of general-purpose DRAM decreases, leading to price increases.

The outlook for this year is also optimistic, as it is predicted to be a semiconductor super cycle brought about by artificial intelligence (AI). It is analyzed that it is in a favorable position in the initial contracts for HBM4 (sixth generation), which will be installed in NVIDIA's next-generation AI accelerator "Rubin," scheduled to be released later this year. Industry estimates suggest that SK Hynix will account for two-thirds of the HBM4 supplied to NVIDIA this year.

The key lies in the number of orders received next year. It is estimated that HBM4 will account for about 20-30% of the HBM market this year, but starting from next year, Rubin is expected to become the main product, and the supply next year will be considered the actual battlefield for future memory dominance.

The industry and market are watching Samsung's counterattack. Samsung Electronics is expected to supply HBM4 to NVIDIA for the first time officially as early as next month. Tension within SK Hynix is also increasing. If Samsung wins the initial supply speed battle, SK Hynix's current technological leadership may be shaken again.

In fact, Samsung Electronics is at a disadvantage in HBM, but still maintains a dominant position in the entire memory market, including DRAM and NAND. Due to SK Hynix's good performance, Samsung Electronics lost the top position in the global DRAM market to it in the first quarter of last year, and in the second quarter, it also lost the top position in the entire memory market including NAND. However, it regained the top position in the entire memory market in the third quarter and returned to the top position in the DRAM market in the fourth quarter.

The securities industry believes that Samsung Electronics' operating profit this year will exceed 130 trillion won, and SK Hynix will exceed 110 trillion won, ushering in the "100 trillion won operating profit era." Both companies plan to introduce HBM4 supply situations and sales targets at investor briefings on the 29th.

On the other hand, SK Hynix decided to implement an additional dividend of 1,500 won per share on the same day. As a result, the annual dividend per share will increase to 1,875 won. At the same time, it will cancel 15.3 million shares (2.1% of the total) worth 12.2 trillion won and has already determined the plan to establish an overseas company in the United States responsible for SK Group's AI investments.

Original article: toutiao.com/article/1855654240397324/

Statement: The article represents the views of the author.