SK Hynix Surpasses Samsung with Stellar HBM Chip Profits Amid AI Boom

SK Hynix, the world's second-largest memory chip maker, reported a remarkable surge in its fourth-quarter operating profit, driven by soaring demand for its High Bandwidth Memory (HBM) chips amid the ongoing boom in artificial intelligence (AI). The company's quarterly figures surpassed market expectations, recording an operating profit of 8.1 trillion won, which exceeded the forecasted 8 trillion won and marked an increase of over 20 times compared to the same period last year.

The significant increase in demand for HBM chips, essential for AI technologies, propelled SK Hynix's operating profit past that of its rival, Samsung Electronics, for the first time. During the previous quarter, Samsung's operating profit was estimated at 6.5 trillion won, underscoring SK Hynix’s advantageous position in the HBM sector.

SK Hynix credited this achievement to the continuous increase in AI server investments from major global tech firms, highlighting the growing importance of AI inference technology. The company began supplying a cutting-edge 12-layer HBM3E chip to its clients during the fourth quarter, with HBM sales now comprising 40% of the total DRAM revenue for SK Hynix.

Looking ahead, SK Hynix has projected a further 100% growth in HBM sales by 2025, as AI demands continue to rise. The company also plans to increase supplies of its current advanced HBM products and develop newer models like HBM4 in response to customer demand. Also, SK Hynix aims to maintain its competitive edge in DDR5 and LPDDR5 production through the implementation of advanced manufacturing processes.

The market for AI chips shows signs of expansive growth, benefiting memory solutions like HBM and high-density DRAM. These insights from SK Hynix's recent statements reflect its strategic advancements and market leadership in this high-demand sector, with a focus on AI-enabled applications in the consumer and enterprise markets, signaling a robust demand for more sophisticated AI infrastructure in the coming years.