SK hynix: “Three years’ worth of DRAM and HBM volumes virtually sold out; high profitability sustainable”

[Financial News] SK hynix said on the 28th, “Virtually all of our DRAM and HBM volumes for the next three years, through 2029, are sold out.”
SK hynix emphasized that not only is demand continuing to outstrip supply, but long-term supply agreements (LTAs) also account for a significant share of production, helping maintain stable profitability. It also presented its vision for sustaining its competitive edge.
During its third-quarter earnings conference call that day, SK hynix shared its combined assessment of LTAs already secured and demand currently under detailed discussion with customers, saying, “The volumes under discussion are also based on customers’ specific purchasing plans and represent demand with a high likelihood of materializing.”
Emphasizing that visibility into medium- and long-term sales had improved considerably, SK hynix added, “We are focused on enhancing medium- and long-term demand visibility by expanding LTAs and translating that into stable revenue and earnings growth.”
The company said that volumes secured through LTAs account for at least 50% of total production in 2027 and 2028, and that it plans to maintain a similar share of LTAs over the medium to long term.
Regarding HBM4E, a high-performance memory product for artificial intelligence (AI), SK hynix said, “We completed sample deliveries of HBM4E in the second quarter, and development and evaluation are progressing smoothly in line with customer schedules.”
SK hynix expects HBM4 to surpass HBM3E in both shipment volume and share of sales in the fourth quarter. The company said, “HBM4 exceeded the planned yield, so we raised our target, while HBM3E also surpassed the mature yield we had originally planned. We are now focused on maximizing productivity to meet strong customer demand.”
SK hynix expects HBM4’s share and prices to rise next year, alongside further improvements in mass-production yields and cost competitiveness. It said, “We expect high profitability—well above the peaks of past cycles—to remain sustainable.”
Confident that AI demand would remain sustainable beyond its peak, SK hynix pointed to customers’ AI investments leading to greater real-world use of AI services and resulting business gains.
SK hynix added, “Major hyperscaler customers recently reported in their earnings announcements that cloud revenue had grown by approximately 30% to 80% year over year,” and said, “We believe a significant portion of that growth is attributable to the expansion of their AI businesses.”
The company went on to say, “We believe the strength of AI investment and demand will remain robust, supported by real business results and a broader range of investors,” and forecast that “the memory market will continue to face a structural supply-demand imbalance, with demand overwhelming supply, for the time being.”
In closing remarks, SK hynix CEO Noh-Jung Kwak said, “We have set new records for six consecutive quarters, but what we are paying closer attention to is that the business environment underpinning these results is changing. The trust we have built through our technological competitiveness is leading to long-term contracts and creating the conditions for us to secure stable profitability.”
President Kwak said, “Unlike in the past, growth potential is taking shape as concrete changes in our business structure. We will carry our current memory strengths, including HBM, into next-generation products and become the partner customers turn to first as they prepare for the future. We will strengthen our capabilities to turn market opportunities into results and sustain them.”

[email protected] Kim Hak-jae, Lim Su-bin Reporter