Korea's Semiconductor 'Top Two' Combined Operating Profit Nears 90 Trillion Won in Q1; Entering the '500 Trillion Won Era'?

South Korea's dominance in the global semiconductor market is on full display as industry leaders Samsung Electronics and SK Hynix announce staggering first-quarter financial results. Their combined operating profits are projected to approach an unprecedented 90 trillion won, fueled by the insatiable demand for AI-driven memory solutions and a sustained increase in DRAM prices.

SK Hynix, in particular, has achieved a remarkable feat, reporting an operating profit of 37.6 trillion won—a staggering 405.5% surge from the previous year. Its operating profit margin soared to an astonishing 72%, significantly outpacing global foundry leader TSMC's 58%. This performance underscores the exceptional profitability and competitive edge of the Korean semiconductor sector.

Samsung Electronics, while not releasing a separate figure for its semiconductor division (DS), reported a preliminary consolidated operating profit of 57.2 trillion won. Market analysts estimate that the DS division contributed approximately 50 trillion won to this figure. When combined with SK Hynix's semiconductor earnings, the total operating profit for the two companies' semiconductor businesses in the first quarter nears the 90 trillion won mark.

This stellar performance, even during a traditionally slower period, is attributed to a significant increase in the sales of high-value products for AI servers, such as High Bandwidth Memory (HBM). Industry observers are now revising their annual forecasts upward, with projections suggesting that the combined annual operating profit for Samsung and SK Hynix could potentially surpass 500 trillion won, heralding a new era of prosperity for the Korean chip industry. Dong-A Ilbo celebrates this achievement as a clear indicator of South Korea's technological prowess and its pivotal role in the global digital economy.