SK hynix Poised to Surpass Samsung in Annual Chip Business Profit

SEOUL: SK hynix Inc., South Korea's second-largest chipmaker, is projected to surpass Samsung Electronics Co. in annual operating profit within the semiconductor sector for the first time this year, according to brokerage reports released on Sunday. This development comes as SK hynix strengthens its market position in the high-bandwidth memory (HBM) sector, a critical component for artificial intelligence chipsets. According to Yonhap News Agency, SK hynix has solidified its role as the exclusive HBM supplier for Nvidia Corp., a leading U.S.-based AI chip manufacturer. In contrast, Samsung Electronics has faced delays, still awaiting quality test approval for its HBM supply to Nvidia. Such strategic positioning has allowed SK hynix to seize a competitive advantage over Samsung in the burgeoning AI chipset market. Based on earnings data for the first three quarters of the year, SK hynix is anticipated to report an operating profit of 23.48 trillion won (approximately US$17 billion) for 2023. This figure outp aces the projected 18 trillion won profit for Samsung Electronics' chip division, as estimated by brokerage firms. In the January-September period alone, SK hynix's operating profit reached 15.4 trillion won, surpassing Samsung's 12 trillion won, according to the earnings consensus from brokerage analysts. Looking ahead to the final quarter of the year, analysts expect SK hynix and Samsung to achieve operating profits of approximately 8 trillion won and up to 6 trillion won, respectively. This anticipated performance further underscores SK hynix's strengthening position in the competitive semiconductor landscape.