Samsung Electronics and SK hynix will release their finalized fourth-quarter results side by side on the 29th of this month. It is unusual for the two companies to hold earnings calls on the same day. Market attention is focused on the detailed report cards to be disclosed that day. In particular, in a global boom for memory chips, the focus is on the two companies' operating margins as revealed by their product "mix" strategies for high bandwidth memory (HBM), standard DRAM, and NAND flash.
According to the Financial Supervisory Service's electronic disclosure system on the 22nd, SK hynix will disclose results first at 9 a.m. on the 29th. The market expects SK hynix to have posted more than 31 trillion won in sales and up to 18 trillion won in operating profit in the fourth quarter alone. The key point to watch is the operating margin. The question is whether, as a manufacturer, it will achieve a remarkable operating margin in the 50% range.
At 10 a.m. on the 29th, Samsung Electronics will hold its finalized results announcement and briefing. Earlier, Samsung Electronics signaled an earnings surprise with preliminary fourth-quarter results of 93 trillion won in revenue and 20 trillion won in operating profit. This is the first time it has opened the era of 90 trillion won in quarterly sales. The securities industry estimates that the semiconductor (DS) institutional sector alone, which had long struggled, recorded around 15 trillion won in operating profit.
Driving the record results at Samsung Electronics and SK hynix most of all was the surge in HBM demand fueled by the artificial intelligence (AI) boom. With Samsung Electronics regrouping and joining the race after SK hynix had dominated the HBM market throughout last year, competition between the two on technology is expected to intensify this year. SK hynix maintained the supply lead for its 12‑high HBM3E (fifth-generation HBM) products through the first half of last year, but Samsung Electronics also increased shipments from the second half, strengthening profitability.
As HBM output expanded and standard DRAM supply tightened, prices surged, reviving the general-purpose memory segment as a factor that cannot be overlooked. In addition, with demand concentrating on enterprise SSDs (eSSD) used in data centers and elsewhere, the NAND flash business—which had long struggled to defend prices—also emerged as an important revenue source. Some market research firms expect NAND to account for as large a share of operating profit as standard DRAM this year.
With the memory chip market entering a super-boom, the key is the strategic allocation of HBM, DRAM, and NAND production. Both companies plan to slightly raise DRAM output next year, but because meeting all market demand is difficult, some degree of "selection and focus" is necessary. A semiconductor industry official said, "At one point, HBM's profitability was five to six times that of DRAM, but lately standard DRAM prices are also soaring, so operating margins will vary depending on the 'merchant's know-how' in allocating supply by market conditions."
For Samsung Electronics, attention is focused on the performance of the memory business within the DS (semiconductor) institutional sector, excluding foundry. The securities industry so far estimates the memory business's operating profit will approach 18 trillion won, projecting a level similar to SK hynix. However, given that Samsung Electronics has greater total capacity (CAPA) than SK hynix for DRAM and NAND, there is also a view that, in terms of operating margin, SK hynix may have done the more "profitable business."
The securities industry expects the two companies' combined operating profit this year to surpass 200 trillion won for the first time. Park Yu-ak, a research fellow at Kiwoom Securities, said, "Samsung Electronics will secure a large number of HBM3E customers and more than triple its shipments from a year earlier," projecting Samsung Electronics' operating profit this year at 120 trillion won. Kim Dong-Won, head of research at KB Securities, put SK hynix's DRAM operating profit at around 100 trillion won and said, "This year's annual operating profit will jump 154% from a year earlier to 115 trillion won."