SK Hynix has set a new record for quarterly performance, driven by a surge in demand for artificial intelligence (AI) semiconductors and rising prices for high-performance memory. The company's cumulative sales for the first half of the year surpassed 100 trillion won for the first time, with an impressive operating profit margin of 76%.
On July 29, SK Hynix announced that its operating profit for the second quarter reached 60.54 trillion won, a 557% increase compared to the same period last year. Sales rose to 79.32 trillion won, marking a 257% increase year-on-year.
These figures significantly exceeded the first quarter's sales of 52.58 trillion won and operating profit of 37.61 trillion won.
In addition to high sales, profitability has also improved dramatically. SK Hynix's operating profit margin of 76% far exceeds that of TSMC, the global leader in foundry services, which reported an operating profit margin in the low 40% to 50% range for the second quarter. This achievement highlights SK Hynix's ability to create a dominant profit structure within the global semiconductor supply chain, even surpassing TSMC, a key player in the AI semiconductor ecosystem.
The second quarter's earnings surprise was fueled by increased investments in AI infrastructure by major global tech companies. As AI evolves from simple learning to fully functional 'agents,' the demand for high-value products such as DRAM for AI servers, high-bandwidth memory (HBM), and enterprise SSDs (eSSD) has surged.
SK Hynix stated, "Both DRAM and NAND flash recorded significant price increases compared to the previous quarter, maximizing profitability."
Strong partnerships with global tech giants have also been a crucial support for the company's robust performance. SK Hynix has completed long-term supply contract negotiations with over ten companies, including key customers, to ensure supply stability. The company plans to continue negotiations with additional major clients to secure long-term business stability.
In terms of technological leadership, SK Hynix is accelerating its entry into the next-generation AI memory market. The company began mass production of its sixth-generation HBM (HBM4) in the second quarter and plans to significantly increase production in the second half of the year. The seventh-generation HBM (HBM4E), which completed sample supply in the first half, will utilize optimized processes with mature technology and stable mass production to widen the technological gap.
The growth of the general DRAM and NAND flash markets is also robust. In the second quarter, sales of the next-generation memory module 'SOCAMM2' surged, and the supply of sixth-generation (1c) process products in the 10-nanometer range has begun in earnest. NAND production is accelerating the transition to advanced processes, with 321-layer products already accounting for the largest share of total production, expected to reach 50% of domestic production capacity by the end of the year.
With record profits, the company's financial health has also strengthened. By the end of the second quarter, cash and cash equivalents increased by 33.6 trillion won from the previous quarter to 88 trillion won. Borrowings decreased to 18.6 trillion won, resulting in a significant increase in net cash to 69.4 trillion won.
SK Hynix plans to significantly expand its production capacity to meet market demand that exceeds supply capabilities. The Cheongju M15X facility, which began operations in April, will accelerate the timeline for mass production as a new memory production base.
The company is also investing to quickly expand production capacity in line with the opening of the clean room for the first phase of the Yongin semiconductor cluster in early 2027, while gradually advancing long-term investments in advanced packaging plant P&T7 and NAND production base M17.
SK Hynix stated, "We will strengthen both production capacity and financial health by maintaining our investment principles."
* This article has been translated by AI.
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