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SK hynix achieves highest-ever operating profit amid rising prices for memory and HBM chips

Published: 29 Oct. 2025, 12:30 Updated: 29 Oct. 2025, 19:02

An HBM4 chip, SK hynix’s sixth-generation high-bandwidth memory, is displayed at the company’s booth during Semiconductor Exhibition (SEDEX) 2025 at Coex in Gangnam District, southern Seoul, on Oct. 22. [YONHAP]

SK hynix reported a record quarterly operating profit of more than 11 trillion won ($7.68 billion) in the third quarter this year, buoyed by surging demand for High Bandwidth Memory (HBM) and higher prices and demand for general-purpose memory chips.

SK hynix said its third quarter revenue reached 24.45 trillion won on Wednesday, up 39 percent from the same period a year earlier. Operating profit jumped 62 percent year-on-year, marking the company’s highest-ever quarterly earnings.

“The expansion of AI infrastructure investments by global customers drove a surge in overall memory demand, allowing us to once again surpass our previous record,” SK hynix said in a statement. “For the first time in the company’s history, operating profit exceeded 10 trillion won.”

The chipmaker became only the second Korean company, after Samsung Electronics, to join the so-called “10-trillion-won club.”

SK hynix's DDR5 server memory showcased at Korea's largest semiconductor display exhibition in southern Seoul on Oct. 23, 2024. [Yonhap]

Operating profit margin hits 47 percent

The stellar results were driven largely by SK hynix’s leadership in the HBM market. The company held a 64 percent share of the global HBM market in the second quarter, far ahead of Micron’s 21 percent and Samsung Electronics’ 15 percent, according to Counterpoint Research.

SK hynix has maintained a competitive edge by being the first to mass-produce and secure large-scale contracts for the latest-generation HBM3E chips, which command premium prices. The company’s operating profit margin rose to 47 percent in the third quarter, up from 42.2 percent in the first and 41.4 percent in the second. HBM accounts for roughly 45 percent of SK hynix’s total DRAM revenue.

Prices for both DRAM and NAND flash memory also continued to rise amid expanding demand. According to DRAMeXchange, spot prices for standard 8-gigabit DDR4 DRAM chips for PCs have climbed for six consecutive months, while prices for 128-gigabit NAND flash memory used in memory cards and USB drives have risen for nine straight months. DDR4 prices have surged more than fivefold from a year earlier, and DDR5 supplies are running so low that “you name the price” has become common industry jargon.

“Shipments of high-capacity 128-gigabyte or higher DDR5 modules for AI servers more than doubled from the previous quarter,” the company said. “In NAND, enterprise SSDs for AI servers, which carry higher margins, accounted for a growing share of sales.”

The SK hynix logo appears in this illustration taken on Aug. 25. [REUTERS/YONHAP]

HBM4 supply to begin in Q4

Alongside the earnings announcement, SK hynix confirmed it will begin supplying HBM4 chips in the fourth quarter this year.

“We have completed all supply agreements with key customers for next year,” the company said. “HBM4 meets all customer performance requirements and supports the industry’s fastest speeds. Shipments will begin in the fourth quarter, with full-scale sales expansion planned for next year.”

The statement follows reports that SK hynix had recently sent HBM4 samples to major clients such as Nvidia for qualification testing, signaling that commercialization is imminent.

The company also said it has already secured customer demand across all product lines, including DRAM and NAND, through next year, effectively selling out its production capacity. It expects demand for high-performance DDR5 and enterprise SSDs to expand further as AI computing workloads spread from dedicated servers to broader infrastructure.

The logo of SK Hynix is seen at its headquarters in Seongnam, Gyeonggi, April 25, 2016. [REUTERS/YONHAP]

New Cheongju fab opens early

SK hynix also moved up the opening of its new M15X fab in Cheongju, North Chungcheong, which had been scheduled for November. To meet stronger-than-expected demand, the company began equipment installation early to accelerate production ramp-up and transition to advanced process nodes.

The company said its investment volume will increase next year compared to 2024, though it plans to maintain a “flexible, market-optimized investment strategy.”

“AI-driven technological innovation is ushering in a new paradigm for the memory industry, expanding demand across all product categories,” said Kim Woo-hyun, executive vice president and chief financial officer at SK hynix. “We will continue to strengthen our leadership in AI memory by leveraging our differentiated technology and market-leading products.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK HAE-LEE [[email protected]]