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SK hynix’s ADR trading launch on Nasdaq was commemorated on the New York Times Square billboard on the 10th (local time) with a brand campaign video celebrating the event. /Yonhap

SK Hynix set a new record for highest quarterly performance in the second quarter, marking the fifth consecutive quarter of record-breaking results as it continues its growth trajectory. Notably, non-operating income from foreign exchange gains and investment asset increases exceeded 62 trillion won, contributing to a total pre-tax operating profit close to 123 trillion won.

On the 29th, SK Hynix announced its consolidated Q2 results, reporting sales of 79.3187 trillion won and operating profit of 60.5426 trillion won, achieving an operating margin of 76%. The company attributed the strong performance to sustained demand growth driven by expanded AI infrastructure investment, with high-performance AI server products leading price increases and maximizing quarterly earnings.

Compared to the same period last year, sales and operating profit surged by 257% and 557%, respectively. Cumulatively, first-half sales reached 131.895 trillion won, surpassing 100 trillion won for the first time ever, with operating profit nearing that level at 98.1529 trillion won.

SK Hynix explained that both DRAM and NAND prices rose sharply following the previous quarter, with sales focused on high-value products such as HBM, AI server DRAM, and eSSD, generating top profitability.

Thanks to strong earnings, the company’s cash equivalents at the end of Q2 increased by 33.6 trillion won from the previous quarter, totaling 88 trillion won. Meanwhile, borrowings decreased by 700 billion won to 18.6 trillion won, expanding net cash to 69.4 trillion won. SK Hynix evaluated that its financial strength has greatly improved due to record-high profits and cash generation.

SK Hynix foresees a broader memory demand base as AI evolves into agent forms that perform complex tasks for users and expands into various services. It anticipates structural growth in both AI and general memory demand.

With big tech companies expanding AI infrastructure investments, additional supply requests continue. SK Hynix expects memory demand growth to persist as these investments are backed by AI service-generated revenues.

Based on these forecasts, SK Hynix is expanding multi-year contract discussions to secure long-term supply stability. It has finalized long-term agreements (LTA) with about 10 key customers and continues discussions with major industry clients. Earlier, SK Chairman Chey Tae-won also revealed cooperation requests from Anthropic for chip manufacturing component supplies.

Currently, SK Hynix’s HBM4 demonstrates differentiated technology competitiveness by achieving the industry’s top power efficiency and cost competitiveness while meeting customers’ required operating speeds. The company began mass shipments of HBM4 in Q2 and plans full-scale production expansion in the second half. HBM4E, after first-half sample supplies, applies optimal processes with matured technology and stable mass production.

SK Hynix aims to maintain leadership in the HBM field through comprehensive competitiveness, including high quality, stable supply capability based on high yields, cost competitiveness, and industry-leading performance.

SOCAMM2 sales surged in Q2, and the supply of products using 10-nanometer 6th generation (1c) processes has begun in earnest.

NAND portfolio strengthening will accelerate by transitioning to advanced processes, focusing on high-capacity and high-performance products. 321-layer products have already become the largest portion of total production, with plans to expand to 50% of domestic production capacity by year-end.

Additionally, SK Hynix considers the ability to supply customer-demanded volumes on time as a core competitive advantage in a market where customer demand exceeds supply capacity.

To this end, the company is advancing the mass production schedule of M15X, and investing to rapidly expand production capacity after opening the Yongin Phase 1 fab cleanroom in early 2027. It plans phased implementation of mid- to long-term investments such as the advanced packaging plant P&T7, NAND production base M17, and new semiconductor cluster, considering customer demand and investment efficiency.

SK Hynix also emphasized that it will strengthen both production capacity and financial soundness by maintaining CapEx discipline while steadily preparing for mid- to long-term growth opportunities.

                                                                                                               Lee Ji-sun