SK Hynix unveils $75 billion shareholder return plan after posting record profit

South Korean chipmaker SK Hynix announced plans on Wednesday to return $75 billion to shareholders this year, following a record-breaking increase in quarterly profit. The surge in earnings was driven by a surge in demand for AI infrastructure, which continues to push up prices of memory chips. The company also revealed that it has exhausted its stock of HBM and DRAM chips until 2029, with HBM demand currently being twice the amount it can supply.

SK Hynix expects AI investment momentum to persist, despite some market jitters about the sustainability of AI spending. CFO Kim Woo-hyun stated that customers are now scrutinizing project feasibility and profitability, as well as refining the timing of their investments.

SK Hynix's return policy for the year totals approximately 100 trillion won, consisting of more than 30 trillion won in cash dividends and over 60 trillion won in share repurchases and cancellations. The company also plans to return a significant portion of the profits generated from its investment in Japanese peer Kioxia through a special dividend.

SK Hynix is currently the world's leading supplier of HBM chips, accounting for nearly half of the market, and a major provider of DRAM chips. The company has signed long-term agreements with 14 major customers to better forecast mid-to-long-term demand, securing more than 50% of its production capacity for 2027 and 2028. To meet the growing demand, SK Hynix intends to significantly increase its capital expenditure next year, focusing on advanced chipmaking processes and expanding its infrastructure in South Korea and abroad.

The company's strong quarterly profit, a record 83.3 trillion won, has helped alleviate market concerns and could potentially see operating profit reach 100 trillion won in the fourth quarter.