South Korean chipmaker SK Hynix announced plans to return approximately $75 billion to shareholders this year after reporting a more than sevenfold increase in quarterly operating profit, driven by surging demand for artificial intelligence (AI) infrastructure and rising memory chip prices. The company reported a record operating profit of 83.3 trillion won for the July–September quarter, compared with 11.4 trillion won a year earlier, while revenue climbed 328% to 104.6 trillion won. The results exceeded analyst expectations and boosted investor confidence in the semiconductor sector.
SK Hynix, a leading supplier of high-bandwidth memory (HBM) chips used in AI processors, said demand for HBM was twice its available supply and that its HBM and dynamic random-access memory (DRAM) chips were sold out until 2029. The company expects the global chip shortage to persist through 2030, despite concerns about the sustainability of AI spending. Its shareholder return plan includes more than 30 trillion won in cash dividends and over 60 trillion won in share buybacks and cancellations. The company also plans to distribute most of its gains from its investment in Japanese chipmaker Kioxia through a special dividend.
The optimistic outlook lifted Asian technology stocks, with SK Hynix shares rising 11% and Samsung Electronics gaining 9% on Wednesday. To secure future demand, SK Hynix has signed long-term agreements with 14 major customers, covering more than 50% of its total production capacity for 2027 and 2028, and plans to significantly increase capital expenditure next year. However, competition is expected to intensify as China’s CXMT prepares to enter the advanced AI memory chip market. SK Hynix believes growing AI adoption and expanding investment across industries will sustain demand, with analysts suggesting operating profit could approach 100 trillion won in the fourth quarter.
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