If you’ve been following the semiconductor industry lately, you know it’s been quite a stir, right? Especially SK Hynix is generating ‘record-breaking’ performance forecasts, and employees are already talking about their ‘happiness circuits’ running at full throttle. Securities firms have even projected that operating profit in Q1 2026 will reach an astonishing 39 trillion KRW. It’s so surprising, it makes you wonder if it’s even possible.
Honestly, talk of a semiconductor supercycle thanks to High Bandwidth Memory (HBM) has been ongoing since last year, but who knew it would be this big? Today, let’s delve into how SK Hynix is maintaining such explosive growth, whether the ‘1.3 billion KRW per person’ bonus employees are anticipating is just a pipe dream, and what kind of global strategy the company is pursuing.
Record Performance: The Start of a Supercycle Led by HBM
Looking at SK Hynix’s current performance forecasts is jaw-dropping. DS Investment & Securities predicted that operating profit in Q1 2026 would reach 39 trillion KRW, with annual figures potentially growing to 211 trillion KRW, and even 282 trillion KRW by 2027. KB Securities estimated SK Hynix’s operating profit at 251 trillion KRW in 2026 and 360 trillion KRW in 2027, raising its target stock price to an incredible 1.9 million KRW.
- Soaring Memory ASP: The average selling price (ASP) is rising much faster than expected.
- HBM Leadership: SK Hynix is leading the HBM market, an essential component for the AI era, with unparalleled technological prowess. Many predict that HBM3E will become the flagship product in 2026.
- General DRAM Shortage: Analysis suggests that the shortage extends beyond HBM to general DRAM, increasing the company’s pricing power.
Given this situation, it’s impossible for performance not to be good, right? In essence, the expansion of AI infrastructure is completely reshaping the memory market.
SK Hynix Bonus: Is ‘1.3 Billion KRW Per Person’ Really Possible?
There’s a good reason why SK Hynix employees are talking about a ‘1.3 billion KRW per person’ bonus. Global investment bank Macquarie Securities projected SK Hynix’s operating profit to be 447 trillion KRW in 2027, and based on this figure, an analysis suggested the company could afford to pay up to 1.29 billion KRW per person in bonuses. The agreement between labor and management last September to use 10% of operating profit as a source for excess profit sharing (PS) was a stroke of genius.
- Basis for Optimistic Forecast: Of course, this 1.3 billion KRW figure is based on the most optimistic forecast. Based on the consensus of domestic securities firms, around 700 million KRW per person in 2026 is considered more realistic.
- Comparison with Samsung Electronics: Samsung Electronics’ labor union is demanding 15% of the semiconductor division’s (DS) operating profit as bonuses, leading to comparisons with SK Hynix. Some analyses suggest that Samsung Electronics employees might receive more if the union’s calculations are met.
- Happy Dilemma: Regardless, for employees, the important thing is being in a position to have a ‘happy dilemma’ over ‘how many hundreds of millions’ they’ll receive. This bonus expectation is even stirring up the recruitment market.
At this point, it’s easy to say, ‘Who needs the lottery?’ It seems like a very desirable virtuous cycle where the company’s success brings smiles to its employees.
Targeting the Global Market: Will a US ADR Listing Give It Wings?
SK Hynix seems to be aiming to expand its presence beyond the domestic market onto the global stage. News has emerged that it plans to pursue a US stock market listing (ADR) in the second half of 2026. While one purpose is to raise up to 14 billion USD (approximately 19 trillion KRW) in funds, perhaps more importantly, it reflects the company’s determination to have its value properly recognized by global investors.
- Fundraising and Investment Expansion: Funds secured through the US listing are likely to be used for investments in new semiconductor production facilities both domestically and internationally. This could include investment in the semiconductor plant to be built in Indiana.
- Strengthening Global Standing: A US stock market listing will help narrow the valuation gap with global peer companies like Nvidia and further elevate the company’s global standing.
- Interest from Foreign Retail Investors: Recently, foreign retail investors have been selling Nvidia and buying major domestic semiconductor stocks like SK Hynix and Samsung Electronics. This is evidence of strong interest from global investors.
SK Hynix’s efforts to solidify its position in the global market are expected to continue. It’s truly preparing to spread its wings and soar.
We’ve covered SK Hynix’s unstoppable performance, employee bonuses, and global expansion plans. SK Hynix is demonstrating an overwhelming presence at the center of the semiconductor supercycle. We eagerly anticipate what amazing news it will surprise us with next.