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Samsung, SK Hynix, and Kioxia projected to reach record operating profits driven by memory demand
Sunday, March 8, 2026 at 01:22 AM
Projections suggest that major memory chip manufacturers including Samsung, SK Hynix, and Kioxia will see massive operating profits, with Samsung and SK Hynix potentially exceeding 20 trillion yen annually and Kioxia reaching 4 trillion yen.
Context
The global memory semiconductor market has entered a structural supercycle, with Samsung Electronics and SK Hynix reporting record-breaking financial results for the quarter ending December 2025. Samsung achieved an all-time high operating profit of 20 trillion won ($13.98 billion), while SK Hynix saw profits surge 137% to 19.2 trillion won. This historic profitability is driven by an insatiable demand for High Bandwidth Memory (HBM) and DDR5 modules required for AI infrastructure, allowing suppliers to command 40-50% operating margins.
Beyond the South Korean giants, Japan’s Kioxia has completed a dramatic turnaround, with S&P Global projecting its EBITDA to reach 2 trillion yen by 2026 as NAND prices remain elevated. However, this shift toward high-margin AI silicon has triggered a chronic shortage of general-purpose memory. As of March 2026, analysts warn that the strategic reallocation of wafer capacity to HBM is significantly inflating costs for the smartphone and PC sectors, creating a widening performance gap between AI-tier suppliers and downstream manufacturers.
Sources (11)
2026 Market Outlook: SK hynix's HBM to Fuel AI Memory BoomInvestor Relations | KIOXIA Holdings CorporationSK Hynix beats forecasts with record quarterly profit, sees explosive memory chip demand | ReutersOutlook On Kioxia Revised To Positive On Improvin | S&P Global RatingsSK Hynix doubles profit in 2025 amid memory shortageSamsung clocks record Q4 earnings on AI-fueled chip demand By Investing.comSamsung and SK hynix shorten memory contracts as pricing power shifts back to suppliers — both companies now at 40-50% operating margins | Tom's HardwareMemory chip squeeze widens gap between winners and losers | Financial Post
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