(4th LD) SK hynix logs record profit in Q3 on AI chip supercycle

SK hynix, a global semiconductor vendor, reported record revenue and operating profit in the third quarter of 2023, driven by strong demand for memory chips in the artificial intelligence (AI) boom. Operating profit surged 557.2 percent from the previous year to 83.33 trillion won, while revenue increased 327.9 percent year-on-year to 104.61 trillion won.

The company has achieved six consecutive quarters of record quarterly revenue and operating profit since the second quarter of the previous year. Net profit also hit a record 39.77 trillion won, up 215.7 percent year-on-year. SK hynix's record performance was primarily due to its competitiveness in high-value-added products, such as high-bandwidth memory (HBM) chips, which it supplies to Nvidia Corp. amid rising prices for conventional memory chips.

The company's operating profit margin exceeded 80 percent in the third quarter, setting a new record, reflecting tight supply conditions. SK hynix has secured virtually all of its DRAM and HBM production capacity through 2029 under long-term agreements and discussions with customers. The company expects the memory supply shortage to persist through 2030 due to expanding investments in AI infrastructure.

The company plans to return over 100 trillion won to shareholders in 2026, with cash dividends accounting for more than 30 trillion won. SK hynix's CEO, Kwak No-jung, attributed the company's success to its technological competitiveness and long-term contracts, stating that the company is transforming into one with earnings stability and mid- to long-term demand visibility.