Samsung, SK Hynix Expected to Post Combined Operating Profit Exceeding KRW 180 Trillion in Q3

Samsung Electronics and SK Hynix are set to release their third-quarter earnings reports this week, with analysts predicting combined operating profits surpassing KRW 180 trillion. This robust performance is attributed to soaring demand for high-bandwidth memory (HBM) and rising conventional DRAM prices. The memory semiconductor industry in South Korea is expected to continue thriving, bolstering the profitability of both companies.

Samsung Electronics' Device eXperience division and non-memory semiconductor operations are anticipated to face profitability challenges, while SK Hynix's HBM4 technology, designed for advanced artificial intelligence accelerators, is gaining traction due to the expanding AI computing infrastructure. Higher DRAM shipments and increased selling prices are expected to offset currency-related pressures from a stronger Korean won.

Market research firm TrendForce forecasts a 10% to 15% increase in DRAM prices in the fourth quarter. Despite Samsung Electronics' foundry business potentially recording a KRW 1 trillion operating loss in the third quarter, investors will closely monitor the company's progress in advanced-node manufacturing and factory utilization efficiency.

The market will also scrutinize the outlook for fourth-quarter and 2027 earnings, considering factors such as the durability of earnings growth, capital expenditure needs, and the effectiveness of shareholder-return measures.