SK Hynix Tops Global Semiconductor Industry with 72% Operating Profit Margin

SK Hynix recorded a high operating profit margin of 72% in the first quarter, securing the top spot among global semiconductor companies. This figure surpasses major competitors such as Micron (67.6%) and Taiwan's TSMC (58%).

The significant growth in the AI (Artificial Intelligence) industry has led to increased demand for high-performance memory semiconductors like HBM (High Bandwidth Memory) and DRAM, enabling South Korean semiconductor companies to achieve high profitability.

SK Hynix's first-quarter operating profit margin of 72% outstrips figures from global major companies including Nvidia (65.0%), Microsoft (47.1%), Apple (35.4%), and Google (31.6%). Samsung Electronics' semiconductor (DS) division is also estimated to have an operating profit margin of 70-77%.

Analysts suggest that the leading two South Korean semiconductor firms have entered a high-profit phase thanks to the high value-added nature of High Bandwidth Memory (HBM) and DRAM, coupled with the booming AI industry. Professor Lee Jong-hwan of Sangmyung University's System Semiconductor Department explained that HBM is 3-5 times more expensive than conventional DRAM, and even general-purpose DRAM prices have doubled or tripled, creating a structure where high operating profit margins are inevitable due to product value enhancement. He added that SK Hynix's lead in HBM and Samsung Electronics' recovery of technological competitiveness support this high-profit structure driven by scarcity.

Samsung Electronics and SK Hynix are accelerating the expansion of their production facilities to meet the surging demand for HBM and general-purpose DRAM. Samsung Electronics has commenced the core equipment installation for its P5 (Plant 5) fab, scheduled to begin operations in 2028.