SK hynix (000660.KS) reported operating profit exceeding 19 trillion won in the fourth quarter of last year, marking the highest earnings in the company's history. With global memory semiconductor shortages driving DRAM and NAND prices sharply higher into the new year, the chipmaker's first-quarter operating profit is expected to surpass 20 trillion won.
SK hynix disclosed Tuesday that fourth-quarter operating profit surged 137.1% year-on-year to 19.1696 trillion won. Revenue for the quarter reached 32.8267 trillion won, up 66% from the previous year, while the operating profit margin hit 58%, surpassing TSMC's 54%.
Riding a streak of record quarterly results, the company also posted all-time high annual figures. Full-year revenue came in at 97.1467 trillion won and operating profit at 47.2063 trillion won, representing increases of 46.7% and 101%, respectively, from the prior year.
Global big tech companies are expanding infrastructure investments, including data centers, to secure dominance in the artificial intelligence industry. This has triggered explosive demand for semiconductor chips such as AI accelerators, DRAM, and NAND flash, propelling SK hynix's earnings to new heights.
"This result reflects our success in simultaneously achieving profitability and growth by strengthening technological competitiveness and expanding the proportion of high-value products in line with AI-driven demand shifts," SK hynix said. "Last year once again proved our world-leading technological capabilities."
The company's board also approved a shareholder return plan, including a dividend of 1,875 won per common share totaling 1.3179 trillion won. Additionally, SK hynix decided to cancel treasury shares worth 12.24 trillion won, representing 2.1% of outstanding shares. This amounts to the company's entire treasury stock holdings, excluding shares reserved for employee compensation and exchangeable bond collateral.