Financial Report: Strong AI Demand! SK hynix Posts Record Q2 Profits, Begins HBM4 Shipments, Cash Nears 88 Trillion Won

SK hynix (SKHY-US) announced its financial results for the second quarter of the 2026 fiscal year on Wednesday (29th). Fueled by continued expansion in AI infrastructure investment and strong demand for high-bandwidth memory (HBM) and AI server memory, the company achieved record highs in revenue, operating profit, and net income. The company stated that as major global tech firms continue to increase their AI investments, memory demand will remain strongly growing, and it is reinforcing its market leadership through long-term supply agreements, capacity expansion, and next-generation product development.

Q2 Revenue and Profits Set New Records

SK hynix's second-quarter revenue reached 79.32 trillion won, a sequential increase and a new quarterly record. Operating profit stood at 60.54 trillion won, with an operating margin of 76%. Net income reached 93.92 trillion won, resulting in a net margin of 118%—all three metrics setting new company records.

Compared to the same period last year, second-quarter revenue surged 257%, while operating profit skyrocketed 557%. Cumulative revenue for the first half of the year surpassed 100 trillion won for the first time, marking a new milestone in the company's history.

The company noted that underpinned by ongoing AI infrastructure expansion, demand for high-value products such as HBM, AI server DRAM, and enterprise SSDs (eSSDs) continues to rise. Combined with rising prices for both DRAM and NAND, this has driven sustained improvements in overall profitability.

Cash Position Nears 88 Trillion Won, Financial Health Improves

Benefiting from record profits and strong cash flow, SK hynix's cash and cash equivalents reached 88 trillion won at the end of the second quarter, an increase of 33.6 trillion won from the previous quarter.

At the same time, total debt decreased to 18.6 trillion won, down 0.7 trillion won from the prior quarter, expanding the net cash position to 69.4 trillion won.

SK hynix stated that its record profits and cash generation capabilities have further enhanced financial flexibility, providing stronger funding support for future capacity expansion and new technology investments.

AI Demand Continues to Heat Up, Memory Enters Structural Growth Phase

The company pointed out that as AI evolves toward 'agent AI' capable of autonomously executing complex tasks, AI applications are rapidly expanding into more service areas, continuously broadening the overall memory demand base.

SK hynix believes the market is undergoing a structural shift—not only is demand for AI-specific memory rapidly increasing, but traditional memory demand is also benefiting from growth.

Moreover, as major tech companies continue investing in AI infrastructure and these investments begin generating revenue through AI services, the company expects AI memory demand to maintain a long-term growth trend.

Signed Long-Term Supply Agreements with Around 10 Customers

To ensure mid-to-long-term supply stability, SK hynix is actively negotiating multi-year supply contracts with customers.

The company stated that it has already completed long-term supply agreements with approximately 10 customers, including key strategic partners, and is continuing discussions with other major clients.

SK hynix aims to enhance operational efficiency through long-term contracts while strengthening the foundation for stable and sustainable operations in the medium to long term.

HBM4 in Mass Production, HBM4E Sample Verification Completed

In AI memory development, SK hynix continues to maintain technological leadership. The company stated that the new-generation HBM4 has successfully achieved the operating speeds required by customers, while also offering industry-leading power efficiency and cost competitiveness. Mass production and shipments began in the second quarter, with capacity expansion continuing in the second half of the year.

As for the next-generation HBM4E, the company completed sample delivery in the first half of the year and has adopted mature, high-yield manufacturing processes to prepare for high-volume shipments in the future.

SK hynix stated it will continue to maintain its leadership in the HBM market by leveraging high quality, high yield, stable supply capability, and leading performance.

In addition to HBM products, SK hynix noted that second-quarter sales of SOCAMM2 grew significantly, and new products using the 10-nanometer-class sixth-generation (1c) DRAM process have officially begun mass production, further increasing the proportion of high-end DRAM products.

NAND Accelerates Upgrade, 321-Layer Product Becomes Mainstream

Regarding NAND Flash, the company is accelerating its transition to advanced processes and continuously increasing the share of high-capacity, high-performance products.

Currently, the 321-layer NAND has become the company's highest-volume product, and is expected to account for approximately 50% of domestic production capacity in Korea by the end of this year, further enhancing cost competitiveness.

With market demand continuing to exceed supply capacity, timely delivery to customers has become a key competitive advantage.

Therefore, the company is accelerating the mass production timeline for the M15X plant and, in coordination with the first cleanroom of the Yongin Semiconductor Complex scheduled to open in early 2027, rapidly expanding production capacity.

Additionally, the company will phase in major investment plans recently announced—including the P&T7 advanced packaging plant, the M17 NAND production base, and a new semiconductor cluster—based on market demand and investment efficiency.

Despite ongoing capacity expansion, SK hynix emphasized that it will maintain strict capital expenditure discipline, balancing long-term growth opportunities from AI with financial stability.

The company stated it will continue to strengthen capacity deployment, technological competitiveness, and financial health to meet the long-term growth demand brought by the global AI wave and further solidify its leadership in the global memory industry.