The semiconductor production facilities of Samsung Electronics in the south of Seoul. Photo courtesy of Samsung Electronics
SEOUL, Jan. 29 (UPI) — South Korea’s two semiconductor giants, Samsung Electronics and SK hynix, posted record performances last year, driven by the rising demand for memory chips amid the AI boom.
Samsung Electronics announced Thursday that its fourth-quarter operating profit more than doubled year-on-year to $14 billion on sales of $65.6 billion, up 23.8%. Both were all-time highs.
For the full year 2025, revenue rose 10.9% from a year earlier to $233.4 billion, while operating income climbed 33.2% to $30.5 billion.
The strong showing came a day after SK hynix released its strong earnings.
In the final quarter of 2025, SK hynix posted $23 billion in sales, up 66% from a year before, for an operating profit of $13.4 billion, a 137% surge.
For the full year, its turnover and operating income increased 47% and 101% to $68 billion and $33 billion, respectively.
The 2026 outlook for both companies remains bright amid continued expansion in the AI industry.
“Looking ahead to Q1 2026, the DS Division expects AI and server demand to continue increasing, leading to more opportunities for structural growth. In response, the division will continue to focus on profitability via a strong emphasis on high-performance products,” Samsung said in a statement.
“In 2026 as a whole, the DS Division aims to lead the AI era with product competitiveness amid a rapidly growing demand environment, particularly by expanding the sales of AI-related offerings in both DRAM and NAND,” it added.
Short for device solutions, Samsung’s DS Division deals with semiconductors and components. By contrast, its device experience part handles mobile phones, home appliances and network equipment.
“As the AI market shifts from training to inference while demand for distributed architectures expands, the role of memory will become increasingly critical,” SK hynix said in a statement.
“Accordingly, not only demand for high-performance memory such as HBM is expected to grow continuously, but also for overall memory products including server DRAM and NAND as well,” it said.
Semiconductor super-cycle and DRAM beggars
In line with the upbeat prospect, brokerage houses project that Samsung’s bottom line will near $90 billion this year, while that of SK hynix will surpass $70 billion.
SK Securities even forecasts that Samsung and SK hynix each will rack up more than $100 billion in profits this year.
Soaring semiconductor prices and outstanding earnings of chipmakers have fueled talk of a “semiconductor super-cycle.”
Business tracker TrendForce predicts that DRAM prices will rocket more than 55% in the first three months of 2026 compared to the previous quarter. Those of NAND flash are also expected to climb over 30% over the same period.
SK Securities analyst Han Dong-hee also said that supply shortages are spreading across all product segments, including advanced high-bandwidth memory, which is essential for AI applications, as well as commodity DRAM used in mobile devices or computers.
“For customers, the top priority has become securing stable volumes through long-term agreements, while suppliers are expected to pursue profit maximization and stable growth by optimizing the share of long-term contracts,” Han said in a report.
Sungkyunkwan University semiconductor professor Choi Byoung-deog said that there are “DRAM beggars,” or executives from major global tech companiesm who have been traveling to Korea to beg for chips from Samsung and SK hynix.
“The super-cycle in memory will eventually come to an end. As global tech giants keep pouring massive investments into AI, however, the current upcycle is likely to last two or three years,” Choi told UPI. “That’s why desperate buyers are flying to Korea to plead for memory chip supplies.”
Sungkyunkwan University semiconductor professor Han Tae-hee struck a more cautious tone, though.
“I also expect that the present super-cycle will continue through this summer. But beyond that, any unexpected events could take place to weigh on the semiconductor industry,” Han said in a phone interview.
“Six months ago, we could not predict today’s booming memory chip sales. Likewise, we cannot know for sure what will happen six months later.”
The share price of Samsung Electronics fell 1.05% on the Seoul bourse Thursday, while SK hynix rose 2.38%.
