South Korean memory chipmaker SK Hynix reported record third-quarter results on October 28. Revenue reached 104.6 trillion won, about $78.1 billion. Operating profit, which measures earnings after running costs, reached 83.3 trillion won, about $62.1 billion. Strong demand for advanced memory products used with artificial intelligence chips helped drive the results.
The company expects demand for memory chips to remain higher than supply through 2030. It said new factories take a long time to build, while the latest production methods are technically difficult. These challenges limit how quickly manufacturers can increase supply.
SK Hynix has signed long-term agreements with 14 major customers, including large cloud computing providers. The agreements cover more than half its production capacity for 2027 and 2028. It plans to spend at least $30 billion on expanding capacity this year. Investment is expected to rise significantly next year.
For electronics manufacturers, the shortage is increasing costs and reducing the profit they make on sales. Makers of phones, computers, and game consoles face greater pressure to raise prices. SK Hynix's chief financial officer expects shipments of computers and mobile devices to fall as memory becomes more expensive.
