SK hynix reported record third-quarter revenue of 104.6155 trillion won and operating profit of 83.3338 trillion won. The memory chipmaker also said it has stopped reviewing a public offering of its Solidigm business.
Revenue rose 32% from the previous quarter, while operating profit rose 38%, according to the company. Revenue passed 100 trillion won for the first time. SK hynix reported an 80% operating margin and net profit of 39.7756 trillion won. It said the results are preliminary and remain subject to change during the audit process.
The company said higher prices for key products amid demand for AI memory helped its results. Sales of server DDR5 increased, HBM4 shipments picked up, and sales of 321-layer TLC enterprise solid-state drives expanded.
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CEO Kwak Noh-Jung said the proposed Solidigm offering was intended to raise outside capital for production facilities. After considering financial market conditions and other factors, the company concluded that proceeding now would not achieve its intended outcome and discontinued the review.
SK hynix also announced a third-quarter dividend of 20,000 won per share. Half is a special dividend tied to gains from its Kioxia investment. Its board approved a 14 trillion won cash dividend and a 20 trillion won share repurchase. The company said 10 trillion won of the repurchased shares will be cancelled, while about 10 trillion won will be used for employee compensation.
The company plans more memory production
SK hynix said it has signed long-term agreements with 14 major customers. The contracted volume represents more than half of its total production capacity for 2027 and 2028. The company expects memory demand to exceed supply through 2030, citing the difficulty of advanced manufacturing and the time needed to build facilities.
For the fourth quarter, SK hynix plans to raise its 321-layer NAND process to more than half of domestic production capacity. It also plans to bring its M15X facility to maximum capacity by year-end to increase HBM4 production, and expects HBM4 to surpass HBM3E in both shipments and revenue in the fourth quarter.
