(Yonhap)
(Yonhap)

Chipmaking giant SK hynix Inc. has surpassed its biggest rival, Samsung Electronics Inc., for the first time ever in terms of quarterly profit, data showed Tuesday, as booming sales of artificial intelligence memory chips propelled its fourth-quarter figures to record highs.

According to its quarterly earnings report, SK hynix posted a record operating profit of 8.08 trillion won ($5.62 billion) for the October-December period, up 15 percent from a year earlier.

In comparison, Samsung Electronics estimated its fourth-quarter operating profit at 6.5 trillion won, with around 3 trillion won contributed by its semiconductor division. Samsung has yet to disclose its final earnings results.

It marks the first time SK hynix has outperformed Samsung Electronics, whose diverse business spans home appliances, mobile devices and semiconductors, in quarterly operating profit.

For the full year 2024, SK hynix recorded a record annual operating profit of 23.47 trillion won, while Samsung Electronics’ semiconductor division is expected to post around 15 trillion won in profit.

SK hynix’s stellar performance was driven by surging demand for high-bandwidth memory chips, which are critical for generative AI applications, despite weak demand for conventional memory chips used in smartphones and personal computers.

SK hynix has commanded a dominant position in the HBM market since it began providing its HBM to Nvidia Corp., whose graphic processing units are essential for AI computing.

In the fourth quarter, HBM sales accounted for more than 40 percent of the company's DRAM sales, up from 30 percent in the previous quarter.

"SK hynix has a portfolio of higher value-added products than its competitors, making it less affected by market downturns," said Ryu Young-ho, an analyst from NH Investment & Securities Co.

Samsung Electronics, the world's No. 1 memory chipmaker, has been struggling to boost its profit as its HBM has yet to reach the global market.

SK hynix, which currently supplies nearly all of its HBM shipments to Nvidia, is expected to maintain its leadership in the market for the foreseeable future.

In November, the company announced its development of 16-layer HBM3E chips and outlined plans to begin mass production of its sixth-generation HBM4 chips in the second half of 2025, further cementing its position as a leader in the industry. (Yonhap)