SK Hynix overtakes Samsung in annual profits for the first time

In a significant shift within the global semiconductor industry, SK Hynix surpassed Samsung Electronics in operating profit for the full year 2025. This marks the first time SK Hynix has achieved this financial milestone over its long-time rival, driven by its leading position in the market for high-bandwidth memory (HBM).

The Rise of SK Hynix

SK Hynix reported a record operating profit of 47.2 trillion won for 2025, exceeding Samsung’s 43.6 trillion won. This success builds on SK Hynix’s acquisition by SK Telecom in 2012 for approximately $3 billion, signaling a period of sustained growth and strategic focus. While Samsung maintains a broader business portfolio encompassing consumer electronics and contract chip manufacturing, SK Hynix concentrates almost exclusively on memory chips.

HBM: The Key to Success

The primary driver behind SK Hynix’s performance is its dominance in the HBM market. HBM is a specialized chip crucial for artificial intelligence (AI) processors and servers, notably those produced by Nvidia. MS Hwang, research director at Counterpoint Research, stated that “SK Hynix is clearly an outstanding ‘AI Winner’ in Asia,” emphasizing the company’s critical role in supplying the infrastructure for the current AI boom.

Did You Know? SK Hynix secured over two-thirds of HBM supply orders for Nvidia’s next-generation Vera Rubin products, according to a local media report.

Competition Heats Up

Despite SK Hynix’s current lead, competition is intensifying. Samsung has been expanding its HBM sales and is on track to deliver HBM4 products – the sixth generation of this technology – later this year. Analysts anticipate a turnaround for Samsung with HBM4, potentially overcoming previous quality concerns. Ray Wang, an analyst at SemiAnalysis, expects Samsung to “show a significant turnaround with HBM4 for Nvidia’s new products.”

The HBM4 Race

While Samsung is making strides, analysts generally predict SK Hynix will maintain a significant market share in HBM4. Wang noted that the competition is primarily between SK Hynix and Samsung, with Micron currently less competitive in this space. He further anticipates that SK Hynix will continue to lead in HBM4, while Samsung will make substantial progress compared to previous generations.

Expert Insight: The increasing competition in the HBM market underscores the strategic importance of this technology for the future of AI infrastructure. The ability to deliver high-quality, reliable HBM chips will be a key differentiator for companies seeking to capitalize on the growing demand for AI-powered solutions.

SK Hynix also outperformed Samsung in the broader DRAM market, which encompasses memory chips used for temporary data storage in various computing devices.

Frequently Asked Questions

What is HBM?

HBM, or high-bandwidth memory, is a specialized chip used in AI processors and servers. It is crucial for the performance of these systems.

What was SK Hynix’s operating profit in 2025?

SK Hynix posted a record operating profit of 47.2 trillion won for the full year 2025.

What is Samsung’s plan to compete with SK Hynix in the HBM market?

Samsung plans to expand its HBM sales and begin delivering HBM4 products this year, aiming to address previous quality issues and become more competitive.

How will the ongoing competition between SK Hynix and Samsung shape the future of the AI chip market?