Korean Media: Samsung Electronics and SK Hynix Achieve 69% Average Operating Profit Margin in Q1

According to South Korea's JoongAng Ilbo, Samsung Electronics and SK Hynix achieved an average operating profit margin of 69% in the first quarter of 2024, a stark contrast to the 8% average seen among other semiconductor-related companies. The exceptional performance is attributed to surging demand for advanced memory chips, particularly high-bandwidth memory (HBM) used in AI servers. Both companies have benefited from pricing power and improved production efficiency, capitalizing on their technological leadership. Meanwhile, smaller semiconductor firms continue to struggle with pricing pressures and high capital expenditures, resulting in limited profit growth. This widening gap highlights an increasing polarization within the global semiconductor industry, driven by technological differentiation.