Seoul: SK hynix Inc. announced on Wednesday that it achieved a record annual operating profit of 47.2 trillion won (US$33.1 billion) for 2025, surpassing rival Samsung Electronics Co. for the first time. This milestone comes amid a surge in demand driven by the artificial intelligence (AI) industry.
According to Yonhap News Agency, the South Korean chip giant reported a more than twofold increase in operating profit from 2024, attributing this success to strong demand for high bandwidth memory (HBM) products used in AI applications. SK hynix's sales reached 97.1 trillion won, marking a 46.8 percent increase from the previous year and setting new records for both operating profit and sales.
SK hynix's performance outshined Samsung Electronics not only in the chip sector but across its entire business portfolio. An earnings guidance report from Samsung Electronics earlier this month estimated its total annual operating profit at 43.5 trillion won for the previous year. SK hynix had already surpassed Samsung in operating profit on a quarterly basis in the fourth quarter of 2024.
In the fourth quarter, SK hynix reported a net income of 15.24 trillion won, a 90.4 percent increase from the previous year. The company's operating profit for the October-December period rose 137.2 percent year-on-year to 19.16 trillion won, with sales climbing 66.1 percent to 32.82 trillion won. These results exceeded market expectations, with analysts estimating a net profit of 13.49 trillion won, according to a survey by Yonhap Infomax.
The company attributed its growth to increased demand for both HBM and conventional memory solutions for servers, and its proactive response to market needs. SK hynix emphasized its focus on enhancing technological competitiveness and expanding its portfolio of high value-added products.
In the DRAM segment, HBM revenue more than doubled year-on-year, significantly contributing to the company's record performance. Looking forward, SK hynix plans to continue expanding its production capacity and remains the only industry player capable of stably supplying both HBM3E and HBM4.
Having completed preparations for mass production of HBM4 in September last year, SK hynix has begun large-scale production to meet customer requests. The company also announced plans to cancel treasury shares worth 12.2 trillion won and will offer dividends of 1,500 won per share, totaling 1 trillion won. The total dividends paid to investors for fiscal 2025 will be 3,000 won per share, or 2.1 trillion won.