Samsung Electronics 100 Trillion · SK Hynix 50 Trillion... K-Semiconductor Makes New History Again

Record High Sales Expected This Year... Samsung Secures 'Global No.1', Hynix Solidifies 'World No.2 in DRAM and NAND'

[Asia Economy Reporter Lee Hye-young] Riding the wave of the global semiconductor market boom, Samsung Electronics and SK Hynix, which both set record-breaking performances last year, are poised to surpass '100 trillion - 50 trillion' won respectively this year. Despite ongoing global supply chain uncertainties and unstable external conditions, Samsung Electronics and SK Hynix, which have demonstrated the resilience of 'K-semiconductors' led by Korean companies, are expected to continue their historic performance this year.

According to industry sources on the 31st, Samsung Electronics' semiconductor division recorded sales of 94.16 trillion won last year, surpassing the 2018 semiconductor supercycle performance of 86.29 trillion won, marking an all-time high. SK Hynix also achieved sales of 42.9978 trillion won last year, setting a new record for the highest sales since its founding.

Samsung and Hynix Likely to Break 'All-Time High' Records Again Within a Year

Industry experts predict that both companies' performances will rebound once again this year. According to financial information provider FnGuide, Samsung Electronics' sales consensus (estimate) for this year is about 306 trillion won, with semiconductors expected to account for approximately 110 trillion won. SK Hynix's sales forecast is 50.15 trillion won, making it highly likely to surpass 50 trillion won just one year after breaking the 42 trillion won mark.

If this year's performance meets expectations, the semiconductor sales of the two companies will surpass 100 trillion won and 50 trillion won respectively for the first time in history. Samsung, which overtook Intel last year to claim the global 'No. 1 semiconductor' title, and SK Hynix, which is solidifying its position as the world's No. 2 in both DRAM and NAND flash segments, are expected to further strengthen their standings.

Following their earnings announcements, Samsung Electronics and SK Hynix expressed positive outlooks during their conference calls, showing confidence in continuing their growth trajectory. This year, they plan to leverage increasing demand from non-face-to-face IT services and data centers, market stabilization due to reduced volatility in the industry cycle, and enhanced competitiveness through technological advancements to once again demonstrate the strength of 'K-semiconductors.'

Samsung Electronics achieved its highest-ever sales performance, driven by a semiconductor boom. In particular, Samsung Electronics recorded sales of over 94 trillion won in the semiconductor sector last year, surpassing the U.S. company Intel to become the world's number one in semiconductor sales for the first time in three years. Samsung Electronics announced on the 27th that its consolidated sales for last year reached 279.6 trillion won, an 18.07% increase compared to the previous year. The photo shows the Samsung building in Seocho-gu on the afternoon of the same day. Photo by Yonhap News.

Han Jin-man, Vice President and Head of Strategy Marketing at Samsung Electronics' Memory Business Division, said during the conference call on the 27th, "The adoption of high-core central processing units (CPUs) is expanding, CPUs supporting DDR5 are being released, and due to increased investments by major IT companies, fundamental demand centered on servers is expected to remain strong." He added, "With the continuous expansion of 5G and the increased adoption of new form factors by key customers, mobile demand is also expected to remain robust."

He also mentioned that the rebound in memory semiconductor prices could occur sooner than expected. Vice President Han stated, "There is a clear trend of reduced volatility and shorter cycles compared to the past in the industry cycle," and added, "Since semiconductor inventory levels remain healthy, we can infer that the market is stabilizing." He further explained, "Some external institutions predict a market turnaround in the first half of the year, which I also consider a possible scenario."

SK Hynix also expressed confidence in revenue and operating profit growth driven by flexible responses to memory semiconductor demand and an increase in NAND market share during its conference call on the 28th.

No Jong-won, President of SK Hynix's Business Division, projected this year's demand growth rates for DRAM and NAND flash at the high teens and 30%, respectively, forecasting that SK Hynix's shipment volume will exceed the market growth rate.

No expressed confidence that the merger effects from SK Hynix's acquisition of Intel's NAND business will become visible starting this year. He said, "With the Solidigm merger, SK Hynix is expected to secure the No. 2 position in the NAND market this year," and predicted that including Solidigm's volume, shipments will approximately double compared to last year. Regarding the supply chain issues that constrained the semiconductor industry throughout last year, he assessed, "These will gradually ease in the second half of the year, leading to increased memory demand."

"Global Economic Uncertainty and Supply Chain Risks Persist"

The securities industry also views the possibility of Samsung Electronics and SK Hynix breaking their highest sales records. Lee Jae-yoon, a researcher at Yuanta Securities, analyzed, "The timing of the DRAM price rebound has been advanced from the third quarter to the second quarter this year, and the overall demand base is better than market concerns, which will increase the visibility of earnings growth in the semiconductor industry."

However, he also noted that risks stemming from ongoing global economic uncertainties, including supply chain issues, remain a concern. This is also why Samsung Electronics did not mention its annual growth forecast for memory semiconductors during the conference call, which it has done every year.

Song Myung-seop, a researcher at Hi Investment & Securities, analyzed, "We need to prepare for economic and liquidity slowdowns due to U.S. interest rate hikes, and it is also very important to consider the positive effects of China's economic stimulus," adding, "The Korean semiconductor industry has been most influenced by China's economic conditions and IT demand strength."

This content was produced with the assistance of AI translation services.