SK hynix said in Seoul on October 28 that memory demand would exceed supply through 2030 as artificial intelligence infrastructure expands. The South Korean chipmaker cited complex manufacturing processes and the time needed to build factories, outlining plans to increase advanced memory production.
The Korea JoongAng Daily reported that third-quarter operating profit reached a record 83.33 trillion won, more than seven times the year-earlier level. It also reported that the company described DRAM and high-bandwidth memory volumes as effectively sold out through 2029, reflecting its assessment of future demand.
The company's announcement gave a more specific measure of firm commitments: signed long-term agreements with 14 major customers cover more than half of production capacity for 2027 and 2028. These contracts include global cloud providers and use pricing mechanisms that reflect market conditions within agreed ranges.
To increase high-bandwidth memory output, SK hynix plans to bring its M15X facility to maximum capacity by year-end. It expects HBM4 to overtake HBM3E in both shipment volume and revenue in the fourth quarter, making the newer generation its mainstream HBM product.
The results prompted a sharp market reaction. The Korea JoongAng Daily reported that SK hynix shares closed 10.89% higher, while Samsung Electronics gained 9.01%. South Korea's Kospi index rose 6.63%, showing the broader impact of the chip sector's earnings announcement on the domestic market.
SK hynix expects investment to rise significantly next year as Yongin's first phase enters full operation. It said spending and timing would remain responsive to demand, profitability and investment efficiency. Its supply outlook remains a company forecast, and the quarterly figures are preliminary pending completion of their review.
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