SK Hynix profit jumps 632% after the company posted record third-quarter results on Wednesday, 28 October, according to The Next Web. Operating profit climbed to 83.3 trillion won, roughly 62 billion US dollars, while revenue reached 104.6 trillion won. This marks the first time the South Korean memory maker has crossed the 100 trillion won threshold in quarterly sales.
Key takeaways
- Operating profit reached 83.3 trillion won for the third quarter.
- Revenue hit 104.6 trillion won for the first time in a single quarter.
- The company expects high demand for memory components to outpace supply until 2030.
- More than half of production capacity for 2027 and 2028 is already booked via long-term deals.
What caused the massive SK Hynix profit jumps 632%?
The stellar financial performance came alongside strong market conditions for advanced components. An operating margin of 80% helped drive net profit to 39.8 trillion won, even though that figure dropped 58% from the previous quarter. Average DRAM prices grew by a high-20s percentage on the quarter, and server DDR5 shipments increased by over 40%.
Volume shipments of HBM4 began during the period. The firm anticipates that high-bandwidth memory used alongside AI chips will surpass HBM3E in both shipments and revenue during the fourth quarter. Meanwhile, the M15X facility is on track to reach full operational capacity by the conclusion of the year.
How long will the memory shortage last?
The memory maker projects that buyers will want more components than factories can produce until the end of the decade. Manufacturing challenges associated with leading-edge processes and lengthy construction timelines for new plants mean this imbalance will persist through 2030. Long-term agreements already cover more than half of production capacity for 2027 and 2028 across 14 major clients.
Chief financial officer Kim Woo-hyun anticipates that rising component costs will reduce overall PC and mobile shipments. Apple CEO John Ternus has described the tight supply situation as a memory crisis. To reward investors, the organization intends to distribute about 100 trillion won for 2026 through cash dividends, buybacks, and special payouts from Kioxia stake gains.
Why it matters
The situation affects device manufacturers, cloud providers, and everyday consumers as component costs climb and hardware supplies tighten. With major players locking down multiyear contracts and production facilities booked far in advance, smaller buyers may face persistent challenges sourcing affordable parts. Executive leadership also decided to halt plans for a stock market listing for Solidigm, its US flash memory unit, due to prevailing market conditions.
Frequently asked questions
Operating profit rose 632% from a year earlier to reach 83.3 trillion won, which is about 62 billion US dollars.
The company expects demand to exceed supply until the end of the decade, specifically persisting through 2030 due to production complexities.
The firm plans to return about 100 trillion won to shareholders for 2026, which includes at least 30 trillion won in cash dividends and substantial buybacks.
Chief executive Kwak Noh-Jung stated that the company had stopped considering a stock market listing for Solidigm, its US flash memory unit, because of recent market conditions.
Long-term agreements signed with 14 major customers cover more than half of the production capacity for both 2027 and 2028.
Based on reporting by The Next Web. Read the original article
