SK Hynix Reports Record Q2 Revenue on AI Memory Demand

Seoul, South Korea - SK Hynix Inc. reported its highest quarterly revenue and operating profit on record in the second quarter, the South Korean memory chip manufacturer said Thursday.

The company reported revenue of KRW 22.232 trillion (US$16.1 billion) for the three months ended June 30, up 26 percent from the previous quarter and 35 percent from the same period last year.

Operating profit was KRW 9.213 trillion (approximately US$6.7 billion), representing a 24% quarter-on-quarter increase and a 68% year-on-year rise. The operating margin was 41 percent.

Net profit totaled KRW 6.996 trillion (approximately US$5.1 billion), a 14 percent decrease from the first quarter but a 70 percent increase compared to the second quarter of 2024. Net margin was 31 percent.

The company attributed the results to investment by technology companies in artificial intelligence infrastructure, which increased demand for AI memory products. Shipments of both DRAM and NAND flash memory exceeded expectations, the company said.

SK Hynix expanded sales of 12-high HBM3E products in the DRAM segment and reported growth in NAND flash sales across all applications. 

Both revenue and operating profit figures surpassed the company's previous records from the fourth quarter of last year.

Cash and cash equivalents rose to KRW 17 trillion (US$12.3 billion) at the end of June, up KRW 2.7 trillion (US$2 billion) from the previous quarter. 

The debt ratio was 25 percent, and the net debt ratio was 6 percent, with net debt declining by KRW 4.1 trillion (approximately US$3 billion) compared to the first quarter.

Inventory levels remained steady during the quarter as customers increased memory orders and production of finished products. 

The company expects memory demand to continue growing as customers plan new product launches in the second half of the year.

SK Hynix anticipates that competition among technology companies to enhance AI model inference capabilities will drive demand for high-performance and high-capacity memory products. 

The company also cited ongoing national investments in sovereign AI development as a factor supporting long-term demand for memory.

The company stated it intends to double HBM sales compared to the previous year. 

SK Hynix reported that it provided the first HBM4 samples to customers in March and is working with partners to optimize performance.

SK Hynix will begin providing LPDDR-based server modules in 2025 and prepare GDDR7 products for AI graphics processing units, with capacity expanded from 16 gigabits to 24 gigabits.

For NAND products, the company will maintain its prudent investment approach while continuing to develop new products.

SK Hynix plans to expand sales of QLC-based high-density enterprise solid-state drives exceeding 120 terabytes and develop products based on 321-layer NAND technology.

The M15X fabrication facility is scheduled to open in the fourth quarter of 2025 and will begin producing DRAM products, including HBM, in 2026.

Construction of the first Yong-in facility is planned to finish in the second quarter of 2027. Capital expenditure for 2025 is expected to increase from previous plans.

Song Hyun Jong, President and Head of Corporate Center, said the company will implement planned investments preemptively this year to ensure the provision of products with visible demand for next year, including HBM.