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[News] SK hynix Reportedly Poised for Over 70% Operating Margin for General-Purpose DRAM amid Tight Supply

2025-11-12 Semiconductors editor

DRAM prices are continuing to rise. According to Chosun Biz, industry sources on the 11th said that with a tightening supply of general-purpose DRAM, prices are expected to keep climbing, and SK hynix’s operating margin for this segment is projected to exceed 70%. The report adds that since much of SK hynix’s DRAM production is now concentrated on HBM, the shortage of general-purpose DRAM is expected to persist.

This surge marks a rare moment in the industry. The report highlights that DRAM operating margins above 70% would be the first in roughly three decades—since the memory semiconductor supercycle of 1995. Having enjoyed a boom between 1993 and 1996, when margins exceeded 70%, the DRAM industry now appears to be entering another major upcycle after nearly 30 years.

As the report points out, during its third-quarter earnings call this year, SK hynix revealed that not only HBM but also next year’s supply of general-purpose DRAM for servers, PCs, and mobile devices has already been fully booked, signaling tight production capacity.

The report further notes that the upward trend in general-purpose DRAM prices is expected to continue, as capacity expansions by Samsung Electronics and Micron are unlikely to keep pace with demand. It adds that Samsung’s new Pyeongtaek Campus Plant 4 (P4), currently under expansion, will be primarily dedicated to HBM production.

Meanwhile, on the HBM front, the report points out that the anticipated entry of Samsung Electronics and Micron into the market has sparked concerns over potential HBM4 price cuts. However, SK hynix stated that supply negotiations were finalized at levels that would “sustain profitability.” Citing industry sources, the report adds that with DRAM supply constraints expected to persist for roughly two years, SK hynix’s earnings are projected to continue rising.

Reflecting these tightening dynamics, Samsung Electronics and SK hynix have reportedly halted or postponed DRAM price negotiations with several clients, Munhwa Ilbo notes. As memory prices surge, both companies are carefully watching market trends before finalizing supply decisions.

This broader uptrend in general-purpose DRAM is being reinforced by surging server DRAM demand. TrendForce’s latest investigations show that server DRAM contract prices are strengthening in 4Q25, driven by ongoing data center expansion among global CSPs. This momentum is lifting overall DRAM pricing. As a result, TrendForce has revised its 4Q25 outlook for conventional DRAM pricing upward, from an earlier forecast of 8–13% growth to 18–23%, with a strong likelihood of further upward revision.

Notably, TrendForce highlights that, with server demand remaining strong, DDR5 contract prices are expected to maintain an upward trajectory throughout 2026, particularly in the first half of the year.

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(Photo credit: SK hynix)

Please note that this article cites information from Chosun Biz and Munhwa Ilbo.

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