SK Hynix reported record third-quarter results on October 28, with revenue reaching 104.6 trillion won, approximately $78.1 billion. Operating profit climbed to 83.3 trillion won, about $62.1 billion, an increase of 632% from a year earlier. The South Korean manufacturer attributed its performance to strong demand for advanced memory products, including high-bandwidth memory used with AI accelerators.
Despite those results, the company expects memory demand to exceed supply through 2030. It cited the technical complexity of cutting-edge manufacturing processes and the lengthy construction schedules required for new production facilities. For electronics manufacturers, the resulting shortage is squeezing margins and making price increases harder to avoid; SK Hynix's chief financial officer expects PC and mobile shipments to decline as memory prices rise.
Long-term agreements with 14 major customers, including large cloud providers, now cover more than half the company's production capacity for 2027 and 2028. These contracts typically last five years, with prices fluctuating within an agreed range. SK Hynix plans to spend at least $30 billion on capacity this year, with investment expected to rise significantly next year.
The company's latest high-bandwidth memory, HBM4, began shipping in volume during the quarter and is expected to surpass HBM3E in shipments and revenue in the fourth quarter. Its M15X plant is scheduled to reach full capacity by year-end. The first phase of its Yongin chip cluster is expected to enter full operation next year.
