(LEAD) SK hynix logs record profit in Q3 on AI chip supercycle

SK hynix Inc. reported record-breaking revenue and operating profit for the third quarter, fueled by soaring demand for high-bandwidth memory (HBM) chips and other memory products. Operating profit jumped 557.2% year-over-year to 83.33 trillion won (US$62.8 billion), while revenue increased 327.9% to 104.61 trillion won in the July-September period.

This marked six consecutive quarters of record earnings for the company. Net profit reached a record 39.77 trillion won, up 215.7% year-over-year. The surge in profitability can be attributed to the rising prices of key AI memory products due to increased demand fueled by the artificial intelligence (AI) supercycle. SK hynix's success is a testament to its competitive edge in high-value-added products.

The company plans to intensify efforts to expand production capacity and enhance product competitiveness to maintain its growth momentum. Additionally, SK hynix announced an extra plan to return 60 trillion won to shareholders, following a recent 40 trillion-won shareholder return program. However, the company recently suspended plans to list its U.S. subsidiary, Solidigm, citing market conditions and strong shareholder opposition.

Solidigm was reportedly considering an initial public offering in the United States, potentially valued at up to $150 billion. The decision to halt the listing came amid regulatory scrutiny over concerns that a separate listing could weaken the position of minority shareholders.