Industry analysis suggests that the average operating margin of the three major memory companies—Samsung Electronics, SK hynix, and US-based Micron—will reach around 80% in the second quarter of this year (April–June).

Market research firm Counterpoint Research stated on the 7th that the average operating margin of the three memory companies in the second quarter is projected to reach the 75–80% range. This is a marked contrast to the 21% operating margin recorded by the three in the second quarter of last year. Counterpoint said, “This shows that memory has secured a position as a core pillar of the artificial intelligence (AI) industry, unlike in the past when it was perceived merely as a component supporting processors.”

In fact, Micron, which announced its results earlier, posted an 80% operating margin in its fiscal third quarter (March–May). Samsung Electronics, which released its preliminary second-quarter results on the same day, reported sales of KRW 171 trillion and operating profit of KRW 89.4 trillion, for an operating margin of 52%. However, the operating margin for the memory business within its semiconductor (DS) division alone is estimated to be around 75%.

Counterpoint projected, “SK hynix is also expected to record a similar level.” According to financial information provider FnGuide, based on current brokerage estimates for sales (KRW 82.58 trillion) and operating profit (KRW 63.15 trillion), SK hynix’s second-quarter operating margin stands at about 76%. Counterpoint added, “Given the characteristics of the semiconductor industry, the share of fixed costs is high and variable costs are low, so once fixed costs are recovered, most of the increase in prices flows straight into profit.”

The firm also forecast that it will be difficult for memory prices to decline not only this year but also next year. Although memory suppliers are moving to expand capacity, production capability will not meaningfully increase until 2028. Samsung Electronics’ Pyeongtaek P5 fab, currently under construction, will begin operations in the first half of 2028 (January–June. The first fab in SK hynix’s Yongin cluster will start operations in the first half of next year, but its utilization rate is expected to reach a normal trajectory only by the end of the year or the following year. Counterpoint noted, “Under the mega project led by the Korean government, the DRAM production capacity of Samsung Electronics and SK hynix is scheduled to double, but the target timeline is 2031.”

However, it also attached a caveat that excessive increases in memory prices could contract the market and in fact pose a risk to suppliers. Counterpoint said, “There are concerns that the sharp surge in memory prices is leading to higher production costs for information technology (IT) devices and higher subscription fees for AI services, with the burden being passed on to consumers,” adding, “If this situation continues, regulatory pressure on memory companies could intensify.”

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