Memory crunch: SK Hynix quadruples profit, employees set for huge bonuses

SK Hynix is benefiting massively from the current memory boom. According to its recently published quarterly figures, the South Korean company generated revenue of 52.6 trillion won, around $35 billion, in the first quarter of 2026. Operating profit reached 37.6 trillion won, around $26 billion. Compared with the previous year, revenue rose by 198%, while profit increased by 405%.

What is driving record figures for SK Hynix is becoming a major burden for many consumers and companies worldwide. The main reason is the enormous demand for memory used in AI data centers. HBM memory, which is used in AI accelerators, is particularly sought after. According to SK Hynix, customer demand currently exceeds its own production capacity. This gives the South Korean manufacturer significant pricing power, and the company appears to be making full use of it. The operating margin in Q1 2026 reached 71%, up sharply from 42.2% a year earlier.

For consumers, this is not good news. If memory manufacturers cannot meet the high demand, purchase prices for device makers rise, and these additional costs could ultimately make RAM, SSDs, notebooks and PCs more expensive. SK Hynix aims to meet the strong demand with additional investments. In 2026, the company plans to expand facilities, deploy EUV equipment and increase production capacity. Whether this will be enough to cover demand remains uncertain. Dell CEO Michael Dell expects demand to continue rising significantly until 2028.

Employees receive substantial bonuses

Given this development, it is not only SK Hynix management that has reason to celebrate. Employees are also benefiting significantly. According to a report from Tom’s Hardware, bonus payments could be exceptionally high as a result of the AI boom. SK Hynix operates a generous profit-sharing model under which around 10% of operating profit is distributed to employees.

Based on current forecasts, this could amount to an average of around $520,000 per employee in 2026. For 2027, figures of up to $900,000 per employee are even being discussed. However, these amounts are not guaranteed payments, but projections based on expected profits.