SK Hynix, Q1 Operating Profit Hits Record 37.6 Trillion Won, Margin 72% 'All-Time High'... Q2 Outlook Also Positive

*This content was translated by AI.

SK Hynix is enjoying an unprecedented boom, posting its highest-ever operating profit margin exceeding 70% alongside record-breaking results since its founding.

On the 23rd, SK Hynix disclosed that, driven by strong demand for memory semiconductors amid expanded investments in artificial intelligence (AI) infrastructure, its consolidated revenue for the first quarter of 2026 reached 52.5763 trillion won, with an operating profit of 37.6103 trillion won. This represents a surge of 198.1% and 405.5%, respectively, compared to the same period last year.

The quarterly operating profit margin also reached 72%, surpassing the 58th% recorded in the fourth quarter of last year. The operating profit margin is a metric indicating the actual profit remaining from core business operations after revenue. It is rare for a global manufacturing company operating factories worldwide to break through an operating profit margin of 70%.

The strong performance also strengthened financial stability. As of the end of the first quarter, cash and cash equivalents increased by 19.4 trillion won from the previous quarter, reaching 54.3 trillion won. Borrowings decreased by 2.9 trillion won, achieving a net cash position of 35 trillion won.

This strong performance resulted from increased investments in expanding AI data centers (DCs) centered on global big tech companies, which boosted demand for server-grade DRAM and HBM. Average selling prices (ASP) also rose rapidly, significantly improving profitability. An SK Hynix official stated, "Despite being the seasonal off-peak period, strong demand continued due to expanded investments in AI infrastructure," and explained, "This performance reflects the expansion of sales of high-value-added products such as HBM, high-capacity server DRAM modules, and eSSDs."

The company forecasts that demand for DRAM and NAND for AI will continue to grow. It anticipates that the economic viability of AI services will improve due to the spread of memory efficiency technologies, leading to an expansion of the overall service scale.

SK Hynix plans to continue developing and supplying new products across DRAM and NAND to meet diversified memory demand. For HBM, it will strengthen comprehensive execution capabilities by integrating performance, yield, quality, and supply stability.

For DRAM, SK Hynix plans to officially begin supplying 192GB small form-factor modules (SOCAMM2) based on the LPDDR6 process, which applies the world's first 10-nanometer-class 6th-generation (1c) process for low-power DRAM, starting this month in Yangsan.

For NAND, following the launch of supply for the consumer SSD (cSSD) "PQC21" applying CTF-based 321-layer quad-level cell (QLC) technology, the company plans to respond to increasing AI demand through a LINE-up across all enterprise SSD (eSSD) segments. Leveraging synergies with Solidigm, which holds strengths in high-capacity QLC eSSDs, it will also strengthen competitiveness in the AI data center and AI PC storage markets.

SK Hynix emphasized that securing supply capabilities to respond to structural demand growth in the AI era has emerged as a core competitive advantage. Accordingly, it explained that investment scale this year will increase significantly compared to the previous year, focusing on expanding production at the Cheongju M15X plant, preparing infrastructure centered on the Yongin cluster, and securing key equipment.

With the unprecedented boom expected to continue into the second quarter, investments will also expand. SK Hynix plans to significantly increase its investment scale this year compared to the previous year, focusing on expanding production capacity at the Cheongju M15X plant, building infrastructure for the Yongin cluster, and securing extreme ultraviolet (EUV) equipment.

SK Hynix stated, "We will strategically expand our production base to proactively respond to medium- to long-term demand growth," and added, "Through investments considering demand visibility, we will secure both supply stability and financial soundness."

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*This content was translated by AI.