SK Hynix unveils shareholder return plan worth S$96 billion after posting 7-fold jump in Q3 profit

South Korean semiconductor manufacturer SK Hynix announced on Oct 28 that its Q3 operating profit surged more than sevenfold, reaching a record high of 83.3 trillion won, surpassing market expectations. The company's strong performance was driven by increased demand for AI infrastructure, which boosted memory chip prices. SK Hynix also revealed its plan to make a shareholder return of approximately 100 trillion won in 2026, consisting of 30 trillion won in cash dividends and 60 trillion won in share repurchases and cancellations, including the 40 trillion won announced in August. The company reiterated its belief that demand will continue to outpace supply until 2030.

In order to improve mid-to-long term demand visibility, SK Hynix has secured long-term agreements (LTAs) with 14 major customers, accounting for more than 50% of its total production capacity for 2027 and 2028. The company is also actively discussing with other customers the possibility of extending contract terms, which typically last for five years. The secured LTA volume aligns with more than half of the company's production capacity for the mentioned years.

As a result of its strong performance, SK Hynix's shares increased by 2%, mirroring the 2.2% gain witnessed in the broader market.