SK hynix (HXSCL) executives cautioned this week that prioritization of high-margin AI memory chips has squeezed supplies of standard DRAM modules used in PCs and smartphones. Industry data show that conventional DRAM spot prices have risen by more than 20% in the past quarter as capacity has been diverted to high-bandwidth memory (HBM) production. SK hynix plans to allocate over 60% of its 2026 DRAM wafer starts to AI-oriented products, a 15 percentage point increase year-on-year, which is expected to prolong shortages for consumer electronics manufacturers.

For the first time, SK hynix reported full-year 2025 operating profit of 47.2 trillion won, eclipsing Samsung Electronics’ memory unit profit of 24.9 trillion won and Samsung’s overall 43.6 trillion won result. The company’s focus on HBM chips—where it holds an estimated 70% global market share—drove its record performance, with HBM revenue more than doubling compared to 2024. Analysts at Counterpoint Research attribute the shift in South Korea’s semiconductor hierarchy to SK hynix’s disciplined strategy of concentrating capital expenditures on AI memory technologies.

SK hynix delivered all-time high annual figures: 97.15 trillion won in revenue, 47.21 trillion won in operating profit (49% margin), and 42.95 trillion won in net income (44% margin). Fourth-quarter results were equally strong, with revenue up 34% quarter-on-quarter to 32.83 trillion won and operating profit up 68% to 19.17 trillion won. The company announced an additional dividend payout of 1 trillion won and a 15.3 million-share buyback. To capitalize on growing AI data center demand, SK hynix will invest 10 billion USD to establish a U.S.-based AI solutions arm, AI Co., repurposing its Solidigm SSD unit to integrate chip design, packaging and system-level optimization for major cloud providers.