South Korean chip giant SK Hynix Inc yesterday said its operating profit doubled last year to a record high after a surge in global demand for technology powering artificial intelligence (AI).
SK Hynix and rival Samsung Electronics Co are among the world's leading producers of memory chips, supplying high-performance components that are essential for AI products and the data centres powering the fast-evolving sector.
The company said in a statement that "2025 marked a year in which the company once again demonstrated its world-class technological leadership."
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Photo: Jung Yeon-je, AFP
The firm said its operating profit soared 101 percent to 47.2 trillion won (US$33 billion) last year.
Net profit came to 42.9 trillion won last year, up 117 percent from 2024. Sales stood at 97.1 trillion won, up 47 percent from the previous year.
The AI boom has pushed up prices and shipments of conventional NAND and DRAM memory semiconductors, while demand for high-bandwidth-memory (HBM) chips, used in AI servers, has soared.
That has helped SK Hynix's shares surge around 220 percent over the past six months.
Fourth-quarter net profit came to 15.24 trillion won, a 90.4 percent year-on-year increase.
The company "plans to further strengthen its proven quality, technological leadership and mass-production capabilities," by "stably supplying both HBM3E and HBM4" chips, SK Hynix said.
The company also said it plans to set up an "AI solutions firm" in the US, committing US$10 billion, and is weighing investments in innovative US companies.
TrendForce Corp (集邦科技) memory analyst Ellie Wang (王豫琪) said HBM chips were essential for advanced processors used in AI systems.
"For Samsung and SK Hynix, while AI has driven a meaningful increase in memory demand, the technical barriers for HBM have also risen," she told AFP.
"How capacity is allocated across different products has become an increasingly critical issue" for the companies, she said, adding that current memory chip "supply tightness is partly due to suppliers concentrating production lines on HBM."
The huge demand for memory chips in AI systems has caused a shortage for those used in consumer electronics — threatening higher prices for phones, laptops and other devices.
"As HBM's share of total production continues to rise, supply shortages are difficult to alleviate," Wang said.
TrendForce predicts that memory industry revenue will surge to a global peak of more than US$840 billion next year.
South Korea has said it will triple spending on AI this year, aiming to join the US and China as one of the top three AI powers.
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