[Edaily Choi Oh-hyun Reporter Kim So-yeon] SK hynix announced that virtually all of its DRAM and High-Bandwidth Memory (HBM) production volumes for the next three years have already been sold. The company explained that as demand for memory surges due to expanding investment in artificial intelligence (AI) infrastructure, customers are moving quickly to secure supply even for the medium to long term. Based on this demand, SK hynix expressed confidence that both HBM sales and profitability will grow significantly next year.

During its third-quarter earnings conference call held on the 28th, SK hynix stated, “Considering the inventory we have already secured and the details of specific discussions with our customers, our DRAM and HBM inventory for the next three years through 2029 is effectively sold out.”

SK hynix announced that day it had signed long-term supply agreements (LTAs) with 14 customers, including major global cloud service providers (CSPs). The confirmed contract volumes alone account for more than 50% of the company’s total production capacity for 2027 and 2028. The company is also discussing plans to further extend the contract terms—which are typically five years—with some customers.

A SK hynix spokesperson explained, “The volumes currently under discussion are also highly likely to materialize, significantly improving our medium- to long-term sales visibility.”

This confidence stems from structural changes in AI infrastructure investment. SK hynix analyzed that AI services are now translating into actual revenue and cash flow, and that the investor base is diversifying from a handful of big tech companies to include general enterprises and governments. On the other hand, considering the technical challenges of cutting-edge processes and the time required to build new factories, the company projected that supply will continue to lag behind demand through 2030.

The company also highlighted the growth momentum of its next-generation product, HBM4. SK hynix began mass production and shipments of HBM4 in the third quarter and expects HBM4 to surpass its existing flagship product, HBM3E, in both shipment volume and revenue in the fourth quarter. The company noted that the supply of 12-layer HBM4 is proceeding smoothly and plans to ramp up production capacity to its maximum level by the end of the year.

In particular, the company forecast that HBM revenue next year will increase significantly compared to this year, and profitability will improve substantially. The company explained that strong demand continues, stating, “Customer demand for HBM exceeds twice the volume we can supply.”

The company also dismissed concerns about deteriorating profitability stemming from recent moves by some customers to reduce the number of HBM stacking layers. It explained that even if the number of layers decreases, increasing the capacity per DRAM die can largely offset the reduction in overall HBM capacity. Furthermore, it stated that while reducing the number of layers might lead to an increase in the number of HBM modules installed, and since multiple factors influence profitability, profitability cannot be judged based solely on the number of stacking layers.

Financial results also set a new all-time record. SK hynix’s third-quarter revenue reached 104.6155 trillion won, surpassing the 100 trillion won mark for the first time in history. Operating profit reached 83.3338 trillion won, a 37.6% increase from the previous quarter, with an operating profit margin of approximately 80%. This improvement was driven by an increase in average selling prices (ASPs): DRAM prices rose by the high 20s percent and NAND prices by the mid-20s percent compared to the previous quarter.

SK hynix CEO Kwak No-jeong personally participated in the conference call that day to explain the company’s shareholder return plans and the reasons behind the suspension of the review for Solidigm’s initial public offering (IPO). This marked the first time CEO Kwak personally addressed shareholders during an earnings conference call.

President Kwak emphasized the company’s policy of returning record-breaking earnings and investment returns to shareholders. “We have always adhered to the principle of sharing the majority of returns with shareholders once our strategic investments bear fruit,” he explained. “This approach ensures that any temporary reduction in our capacity for shareholder returns—which may occur as we prepare for the future—is offset by those returns, allowing us to boldly continue investments for sustainable growth while safeguarding shareholder interests.”

He also emphasized, “In accordance with this principle, we have decided to return the investment gains from Kioxia realized this year to shareholders as a special dividend,” adding, “We will continue to uphold this principle unwaveringly so that shareholders can directly experience the results of our strategic investments.”

Regarding the Solidym IPO, he explained, “It was a plan to secure funds for expanding Solidym’s production facilities by leveraging external capital, thereby reducing our investment burden and expanding our capacity for shareholder returns.” He continued, “However, after comprehensively considering recent financial market conditions and other factors, we determined that it would be difficult to fully achieve the originally expected effects at this point in time, so we have suspended consideration of the plan.”

Meanwhile, SK hynix plans to implement shareholder returns totaling approximately 100 trillion won this year, including cash dividends of over 30 trillion won and share buybacks and cancellations of over 60 trillion won. In particular, the company has decided to distribute most of the profits realized from its investment in Kioxia as a special dividend. The third-quarter dividend per share was 20,000 won, consisting of a performance-based dividend of 10,000 won and a special dividend of 10,000 won.