Core Insights - The global storage chip supercycle driven by the AI boom has led to record profits, prompting Samsung Electronics and SK Hynix to issue their highest performance bonuses in years [1][2] Group 1: Samsung Electronics - Samsung's semiconductor division confirmed that eligible employees will receive a bonus equivalent to 47% of their base annual salary, marking a significant recovery from a 0% bonus rate in 2023 due to a sluggish chip market [1] - The bonus distribution reflects the division's strong recovery, with the performance incentive mechanism named "Excess Performance Incentive" calculated based on 20% of the previous year's economic value added [1] - Samsung's mobile division (MX) has set its OPI dividend ratio at a full 50%, while other divisions like consumer electronics and networks have a much lower ratio of about 12%, depending on their performance in 2025 [1] - Samsung's preliminary Q4 financial report indicated an operating profit of 20 trillion KRW (approximately 13.6 billion USD), with the DS division contributing around 16 to 17 trillion KRW, primarily due to soaring prices of advanced and general storage chips [1] Group 2: SK Hynix - SK Hynix is preparing to distribute larger bonuses by removing the previous internal cap of 10 months' salary, allocating 10% of this year's total operating profit for a profit-sharing plan [2] - The company's estimated annual operating profit is 45 trillion KRW, with an average bonus exceeding 140 million KRW per employee, marking a historical high [2] - 80% of the bonus will be paid in a lump sum, while the remaining 20% will be distributed over two years [2] - SK Hynix is also restarting its employee stock ownership plan, allowing employees to convert up to half of their bonuses into company stock, with a 15% cash premium for holding the stock for a year [2] - Since the end of 2024, both Samsung and SK Hynix have shifted much of their chip production capacity to high-bandwidth memory (HBM), which has led to a supply crunch for general memory products like DDR5, driving up prices across all memory products [2] - SK Hynix, as a market leader in HBM, has seen these profits translate into record profitability, while Samsung benefits from its broader production scale and remains a global sales leader in general storage [2] Group 3: Upcoming Reports - Both companies are expected to release detailed annual performance reports later this month [3]