SK hynix commits more than half of its 2027–28 capacity through long-term agreements
SK hynix has secured long-term agreements covering more than half of its production capacity for 2027 and 2028, while accelerating the move to HBM4 as demand for AI server memory grows.
The company expects HBM4 to overtake HBM3E in both shipment volume and revenue during the fourth quarter, supported by a ramp to maximum capacity at its M15X facility by the end of the year. Rising server DDR5 sales also contributed to third-quarter revenue of 104.6 trillion won, an increase of 32% on the previous quarter.
To expand supply, SK hynix plans to increase production on its sixth generation 10nm-class process and grow sales of DDR5 and LPDDR5 SOCAMM for AI servers. It nevertheless expects demand to remain ahead of supply through 2030 because of the technical difficulty of advanced processes and the time needed to bring new factories into operation.
The agreements covering 2027 and 2028 commit capacity several years ahead of delivery, although the company has not broken that allocation down by customer or individual device.
Sources
Image: SK hynix DDR5 memory form factors on display. Archive photograph; not an illustration of the reported capacity allocation. Photo: 4300streetcar / Wikimedia Commons. Image source. CC BY 4.0.
