SK Hynix Posts Record 72% Operating Profit Margin in Q1

SK Hynix achieved its highest-ever performance in the first quarter with an operating profit margin of 72%. This means that for every 10,000 won worth of products sold, 7,200 won is left as profit, a figure far exceeding the global manufacturing average operating profit margin (in the 20% range). In this quarter, SK Hynix recorded sales of 52.5 trillion won and operating profit of 37.6 trillion won, achieving its highest-ever performance with sales nearly doubling and operating profit more than quintupling compared to the same period last year.

The key driver behind this performance was the surge in demand for artificial intelligence (AI) semiconductors and a rise in memory semiconductor prices. The high-bandwidth memory (HBM) used in AI servers was the primary contributor to the results. Kim Woo-hyun, SK Hynix Chief Financial Officer (CFO), stated, "Although the first quarter is typically a seasonal off-peak period, strong demand driven by increased AI infrastructure investment has continued a tight supply environment.”

SK Hynix forecasts that HBM demand will exceed supply capacity for the next several years. Park Suk-hyun, an economist at Woori Bank, commented, "As the semiconductor demand from big tech companies investing in AI in the U.S. continues to expand, there is a high probability that the scale of profits will further increase in the second and third quarters.”

Samsung Electronics, which released its preliminary results prior to SK Hynix, also posted its highest-ever performance.