[Edaily SOYEON KIM Reporter Choi Oh-hyun] SK hynix announced on the 28th that its total shareholder returns for this year will reach 100 trillion won. This includes cash dividends of over 30 trillion won and a total of 60 trillion won in share buybacks and cancellations.

On this day, SK hynix announced additional shareholder return measures, as it had previewed last August. The share buybacks and cancellations total 60 trillion won, including the 40 trillion won announced last August. Through this, the company plans to fulfill its commitment to return more than 50% of its free cash flow (FCF). The previously announced 40 trillion won share buyback was completed last week, and the shares are scheduled to be canceled soon.

In the third quarter, the company will return 14 trillion won to shareholders in the form of cash dividends. The dividend will be 20,000 won per share, consisting of a 10,000-won dividend reflecting improved earnings and a 10,000-won special dividend sharing the returns from the Kioxia investment. The company has decided to return most of the profits realized from its investment in Kioxia this year to shareholders.

In addition, the board of directors approved a 20 trillion won share buyback at its meeting today. Of the shares to be purchased, 10 trillion won—intended for shareholder returns—will be fully canceled, while the remaining approximately 10 trillion won is earmarked for employee compensation and is not included in the shareholder return total.

◇ Sets Another Record for Best-Ever Performance… Revenue Exceeds 100 Trillion Won

SK hynix also announced its third-quarter results, marking the first time its quarterly revenue has exceeded 100 trillion won. The company disclosed that, on a consolidated basis, it recorded revenue of 104.6155 trillion won and operating profit of 83.3338 trillion won for the third quarter of this year. Compared to the same period last year, revenue increased by 327.9% and operating profit by 632.1%. Compared to the previous quarter, revenue and operating profit rose by 31.9% and 37.6%, respectively. The operating profit margin stood at 80%.

The operating profit consensus (average of securities firms’ forecasts) compiled by FnGuide Inc. was 76.964 trillion won, and the third-quarter results exceeded this by 8.2%.

SK hynix has once again set a new record for quarterly earnings, following its performance in the second quarter. In particular, third-quarter operating profit significantly exceeded last year’s full-year operating profit (47.2 trillion won). Cumulative revenue through the third quarter of this year totaled 236.5105 trillion won, while cumulative operating profit reached 181.4867 trillion won.

These record-breaking results stem from rising prices of key products driven by increased demand for artificial intelligence (AI) memory. Leveraging the competitiveness of its high-value-added products, the company once again posted record-high quarterly results for both revenue and operating profit.

By product, DRAM performance was driven by a significant increase in sales of server-grade DDR5, as shipments of the 6th-generation High Bandwidth Memory (HBM4) began in earnest. In the NAND sector, sales of 321-layer TLC (Triple-Level Cell) enterprise SSDs (eSSDs) expanded, and high-value-added products for data centers continued to show growth across the board.

◇ Memory Supply Shortage to Persist Through 2030… Long-Term Agreements (LTAs) Signed with 14 Companies

SK hynix forecasts that the memory supply shortage will persist through 2030. The company analyzed that a virtuous cycle has taken hold, in which increased AI usage—driven by its role in boosting productivity and generating new revenue across various fields such as software development, customer service, and search—leads to expanded infrastructure investment. It also noted that the scope of AI investment is broadening from a handful of companies to include general businesses and even national governments.

Supply remains woefully inadequate relative to demand. Given the increasing complexity of cutting-edge process technologies and the lengthy time required to build new production facilities, the company expects demand to continue outpacing supply through 2030.

The company’s strategy is to strengthen its portfolio by focusing on high-value-added products. It plans to rapidly increase the proportion of its 10-nanometer-class 6th-generation (1c) process and boost sales of DDR5 and LPDDR5 SOCAMM for AI servers. To meet HBM demand, the company plans to maximize the production capacity of the M15X line by the end of the year to increase HBM4 production. Accordingly, the company expects HBM4 to surpass HBM3E in both shipment volume and revenue in the fourth quarter, establishing itself as a flagship product.

The company has currently signed long-term supply agreements (LTAs) with 14 major customers, including major global cloud service providers (CSPs). It is also proactively discussing extending the contract terms—which are typically five years—with some customers. The LTA volume secured to date accounts for more than 50% of the company’s total production capacity for 2027 and 2028.