SK hynix reported record second-quarter 2026 results, with revenue rising to KRW 79.3 trillion and operating income reaching KRW 60.5 trillion, both all-time highs. The company said demand from AI infrastructure and tight supply conditions drove the surge, while DRAM and NAND prices climbed sharply. Despite the strong quarter, the stock fell 8.98% in regular trading to $130.17 and slipped another 2.05% after hours to $127.5, leaving it near the low end of its 52-week range.
Key Takeaways
Revenue rose 51% from the previous quarter and 257% from a year earlier to KRW 79.3 trillion.Operating income jumped 61% sequentially and 557% year over year to KRW 60.5 trillion.DRAM average selling prices increased about 30%, while NAND prices rose in the mid-50% range.HBM4 mass production shipments began in the quarter, with a broader ramp planned for the second half.Management said AI-related demand remains strong and that it has signed long-term agreements with about 10 customers.
Company Performance
SK hynix delivered a rare combination of rapid growth and unusually high profitability in the second quarter. Revenue and operating income both hit record levels, helped by strong pricing, a better product mix and continued demand for AI memory chips.
The company said the market for memory is changing as AI moves from training to inference and becomes more widely used in search, coding and productivity tools. Management described this as a structural shift in demand, with both AI memory and conventional memory growing at the same time.
The results also showed how important high-value products have become. Sales of enterprise SSDs doubled from the previous quarter, and Solidigm’s high-capacity enterprise SSD revenue rose more than threefold. On the DRAM side, sales were led by HBM3E and AI server DRAM products, while the company also began supply of SOCAMM2 products.
Financial Highlights
Revenue: KRW 79.3 trillion, up 51% quarter on quarter and 257% year on year.Operating income: KRW 60.5 trillion, up 61% quarter on quarter and 557% year on year.Operating margin: 76%, up 5 percentage points from the prior quarter.EBITDA: KRW 64.6 trillion, with an 81% margin.Pre-tax profit: KRW 122.7 trillion.Net profit: KRW 93.9 trillion, with a net margin of 118%.Cash and cash equivalents, including short-term investments: KRW 88 trillion, up KRW 33.6 trillion from Q1.Interest-bearing debt: KRW 18.6 trillion, down KRW 0.7 trillion from Q1.Net cash: KRW 69.4 trillion.
– Debt-to-equity ratio: 7%, down 5 percentage points from the previous quarter end.
The company’s financial strength is reflected in its impressive gross profit margin of 68%, while return on assets reached 43% over the last twelve months as of Q1 2026, according to InvestingPro data. An InvestingPro Tip highlights the company’s “impressive gross profit margins,” one of 16 exclusive tips available to subscribers.
Earnings vs. Forecast
No forecast figures were provided for the quarter, so a direct comparison with analyst expectations was not available. Even without a formal estimate, the scale of the results points to a very strong quarter.
Revenue of KRW 79.3 trillion and operating income of KRW 60.5 trillion were record highs, and the company said both figures reached all-time levels. The operating margin of 76% also marked a new peak. Compared with the company’s recent history, the quarter stood out not just for growth, but for the speed of the improvement.
The main drivers were clear: higher DRAM and NAND prices, stronger AI-related demand, and a richer mix of premium products. Non-operating gains also lifted bottom-line profit, including KRW 63.3 trillion from the sale and valuation of investment assets.
Market Reaction
The stock moved in the opposite direction of the earnings report. SK hynix closed the regular session at $130.17, down 8.98% from the previous close of $143.02. In after-hours trading, it fell another 2.05% to $127.5, or $2.67 lower.
That put the shares near the bottom of their 52-week range of $128.38 to $194.8, and the after-hours price slipped slightly below that low. InvestingPro data confirms the stock is trading just 1% above its 52-week low, with shares down 21% over the past week alone. The platform’s Financial Health Score rates SK hynix as “GREAT” with an overall score of 3.71 out of 5, suggesting strong fundamentals despite the recent selloff. The decline suggests investors may have been focused less on the record quarter and more on what comes next, including capital spending, pricing durability and how much of the current strength is already reflected in the share price.
No trading volume data was provided, so it is not possible to determine whether the move came with unusually heavy activity.
Outlook & Guidance
For the third quarter of 2026, SK hynix said DRAM shipments should rise about 10% from the second quarter, with the company actively responding to demand, especially in server products. NAND bit shipments are expected to rise by a low single-digit percentage.
Management also said 2026 capital spending is expected to reach the high KRW 40 trillion range, as the company accelerates investment and pulls forward the mass production schedule at its M15X facility. The clean room at Yongin Phase 1 is expected to open in early 2027.
On the product side, SK hynix said:
HBM4 mass production shipments began in Q2, with a full ramp planned for the second half of 2026.HBM4E sample shipments were delivered in the first half of 2026, with volume production targeted for 2027.The company is developing IHBM technology for future products such as HBM5.NAND production is shifting toward advanced nodes, with the 321-layer product expected to account for half of domestic capacity by the end of 2026.
The company also said it is reviewing additional shareholder return measures and plans to communicate more details within the year.
Executive Commentary
Song Hyeon-jong, president of the corporate center, said the quarter reflected broad demand strength. “Second quarter revenue increased by 51% quarter-on-quarter and 257% year-on-year, reaching KRW 79.3 trillion, marking a record high revenue following the previous quarter,” he said.
He also framed AI demand as a long-term driver. “AI technology is evolving into an agentic form that performs complex tasks on behalf of users for extended periods,” he said. “As AI spreads across various services such as search, coding, and productivity tools, the scope of demand is widening from a memory perspective.”
On supply discipline, he added: “Our capacity expansion will be executed flexibly in alignment with confirmed customer demand, we do not believe our medium to long-term investment plans will lead to oversupply right away.”
CFO Kim Woo-hyun addressed investor concerns about AI infrastructure spending, saying the company sees current trends as a shift in how existing infrastructure is used. “We view these developments not as a sign of AI investment slowdown, but more as a transition towards higher utilization of the AI infrastructure that has already been built at scale and as well as accelerated monetization efforts,” he said.
Risks and Challenges
Heavy capital spending: Planned capex in the high KRW 40 trillion range could pressure returns if demand weakens.Memory cycle risk: DRAM and NAND pricing can change quickly if supply expands.Dependence on AI demand: A slowdown in AI infrastructure spending could affect growth.Execution risk on new products: HBM4, HBM4E and advanced NAND nodes must ramp smoothly.Profit sustainability: The quarter included large non-operating gains that may not repeat.
Q&A
Analysts focused on several key issues during the call.
One major topic was whether AI infrastructure spending is slowing. Management said it sees the trend differently, arguing that customers are using existing infrastructure more efficiently and pushing for faster monetization, not cutting back on investment.
Another focus was long-term capacity expansion. Management said its plans are based on structural AI demand and customer discussions, including long-term agreements. It said it has already completed LTA negotiations with around 10 customers and will expand capacity in stages to avoid oversupply.
Analysts also asked about HBM pricing for 2027. The company said talks are ongoing with major customers and that pricing will reflect not only conventional DRAM trends, but also the higher resource needs, technical complexity and value of HBM.
Questions on HBM4 competitiveness drew a strong response. Management said its advantage comes from more than performance alone. It pointed to scale, stable yields, quality and customer trust as key strengths that are difficult for rivals to copy quickly.
Finally, analysts asked about shareholder returns after the company’s cash position improved. Management said it is reviewing additional measures and aims to share a plan with the market within the year.
Full transcript – SK hynix Inc (SKHY) Q2 2026:
Park Seong-hwan, Head of IR, SK hynix: Good morning. Thank you for your participation in SK hynix earnings release conference call. Today, we will begin with SK hynix’s presentation and move on to a Q&A session. If you have any questions, please press star one, that is star and one on your phone. Note that presentations will be interpreted simultaneously, and the Q&A session will be consecutively interpreted. With that, we will now begin SK hynix earnings release conference call for second quarter of 2026. Good morning, afternoon, and evening. This is Park Seong-hwan, Head of IR at SK hynix. Welcome to the SK hynix 2026 second quarter earnings release conference call. Allow me to introduce the executives present here with me today.
We are joined by President of Corporate Center, Song Hyeon-jong, CFO, Kim Woo-hyun, Head of DRAM Marketing, Park Joon-deok, Head of NAND Marketing, Song Chang-seop, and Head of HBM Sales and Marketing, Kim Ki-tae. Let me issue a disclaimer that our second quarter results included in this conference call are consolidated figures and provisional in nature, as the external auditor’s review has not yet been completed. Accordingly, they remain subject to change. In addition, forward-looking statements, including market outlook and the company’s plans may vary depending on changes in macroeconomic and market circumstances. With that, we will now begin SK hynix earnings release conference call for second quarter of 2026. President Song Hyeon-jong will first present the earnings, followed by the company’s future plans and market outlook, and a Q&A session with the attending executives. Good morning, everyone.
Song Hyeon-jong, President of Corporate Center, SK hynix: This is Song Hyeon-jong, President of Corporate Center. Allow me to first introduce SK hynix’s performance for the second quarter of 2026. In the second quarter, strong demand driven by the expansion of AI infrastructure investment and a tight supply environment continued, leading to a sustained upward trend in prices. Both DRAM and NAND recorded meaningful price increases following the previous quarter, with AI-related products such as server DRAM and enterprise SSDs driving this growth. As a result, second quarter revenue increased by 51% quarter-on-quarter and 257% year-on-year, reaching KRW 79.3 trillion, marking a record high revenue following the previous quarter. In DRAM, amidst limited supply capabilities, we expanded sales centered on HBM3E and AI server DRAM products, achieving high single-digit % increase in bit shipments in line with our guidance. In particular, sales of LPDDR products for servers, including SO-DIMM 2, grew significantly.
Park Seong-hwan, Head of IR, SK hynix: ASP rose by approximately 30%, driven by the continued price strength in conventional DRAM. In NAND, from a low base of reduced shipments in the first quarter and with the expansion of enterprise SSD sales, we recorded a mid-teen % increase in bit shipments in line with our guidance. Our enterprise SSD revenue increased twofold from that of the previous quarter, and Solidigm’s revenue from high-capacity enterprise SSDs of 30 terabyte and above also expanded more than threefold from that of last quarter. ASP increased by mid 50% due to strong pricing across all products. With price increases across both DRAM and NAND segments and improvement in stock cost structure, second quarter operating income reached KRW 60.5 trillion, up 61% quarter-on-quarter and 557% year-on-year.
Operating margin also improved by 5 percentage points from that of the previous quarter to record 76%, achieving all-time highs for both operating income and operating margin. Second quarter depreciation and amortization amounted to KRW 4 trillion. EBITDA stood at KRW 64.6 trillion with an EBITDA margin of 81%. Net non-operating profit reached KRW 62.2 trillion, including foreign exchange-related net gains of KRW 1.1 trillion due to the rising exchange rate and gains from the sale and valuation of investment assets totaling KRW 63.3 trillion. Consequently, pre-tax profit was KRW 122.7 trillion, net profit was KRW 93.9 trillion, and the net profit margin was 118%. As of the end of the second quarter, our cash and cash equivalents, including short-term investments, stood at KRW 88 trillion, an increase of KRW 33.6 trillion from the end of the previous quarter. Interest-bearing debt decreased by KRW 0.7 trillion to KRW 18.6 trillion.
Accordingly, net cash expanded to KRW 69.4 trillion, and debt-to-equity ratio improved by 5% percentage points from the previous quarter end to 7%. Now let me share our market outlook. AI technology is evolving into an agentic form that performs complex tasks on behalf of users for extended periods. As AI spreads across various services such as search, coding, and productivity tools, the scope of demand is widening from a memory perspective. Alongside high-performance memory like HBM, which is necessary for improving AI server performance and expanding system scale, demand for server DRAM to support agent services is also increasing. Additionally, the role of high-performance enterprise SSDs is widening for more efficient processing of continuously generated AI outputs. We are witnessing a structural shift in demand where both AI memory and conventional memory are growing together.
As AI models improve and software optimization advances, the computational volume and cost per individual task are continuously decreasing. We anticipate that these improvements in efficiency will not dampen overall infrastructure demand. Rather, they will lower price and adoption barriers for AI services, thereby expanding the user base and scope of applications. Major big tech customers are expanding infrastructure investments due to increased AI service usage and shortage of computing capacity. Based on the growth in revenue and profits generated from AI services, they appear to be continuing to expand their memory procurement. In fact, our major customers are still requesting more memory supply. In PC and mobile applications Temporary sales adjustments are occurring due to difficulties in securing memory. We expect these segments to gradually regain growth momentum as supply shortage eases and AI services become more widely adopted.
Amidst constrained supply conditions, DRAM and NAND demand are projected to grow by mid-20% and high teen percent respectively. Should supply constraints ease going forward, the market’s growth trajectory could expand further as latent demand is met. On the supply side, however, it appears difficult for the supply-demand balance to improve meaningfully in the near term. This is due to the increasing complexity of advanced processes applied to HBM and AI server memory, as well as lead times required for constructing new production facilities. With tight supply-demand conditions expected to persist for a considerable period, discussions regarding multi-year contracts to secure mid to long-term supply stability with customers are ongoing. To date, we have concluded LTA negotiations with around 10 customers, including our key customers, and are continuing further discussions with our major industry players. These LTAs represent strategic partnerships that go beyond simple volume supply.
They are designed to secure mid to long-term supply stability and facilitate the development of next generation memory aligned with our customers’ technology roadmaps. While specific pricing structures vary depending on the customer and product characteristics, they are designed to address price volatility. Furthermore, financial mechanisms such as deposits are incorporated to support contract fulfillment and enhance the visibility and reliability of customers’ mid to long-term demand plans. Building on this, we will enhance the efficiency of our investments and production operations, thereby strengthening the foundation for mid to long-term business stability and sustainable growth. Next, I will discuss the company’s plans. For the third quarter, DRAM shipments are expected to increase by approximately 10% from that of Q2 as we actively respond to demand with focus on server products. For NAND, we plan bit shipment increase of low single-digit percent quarter-on-quarter.
As AI models become more sophisticated, the performance levels required for memory are rising even further, and the scope of competitiveness is expanding beyond the design of individual memory products to include system architecture and packaging technologies. Leveraging our competitive portfolio of DRAM and NAND, including HBM, and our co-development capabilities with customers, we will lead memory innovation from a system level. First, regarding HBM4, through continuous product optimization, we have demonstrated differentiated technological competitiveness by achieving the data processing speeds required by customers, while attaining industry-leading power efficiency and cost competitiveness. We began mass production shipments in Q2 and plan full-fledged ramp up of production in the second half of the year. For HBM4E, we supply samples to major customer in the first half of the year.
HBM4E is produced with the optimal tech node that is mature and has proven mass production stability, and we expect the subsequent development schedule to proceed smoothly. Based on our comprehensive competitiveness, which includes stable supply capabilities and cost competitiveness backed by superior quality and high yields, as well as industry-leading performance, we will continue to maintain our HBM leadership. Additionally, for DRAM, we have fully commenced the supply of SOCAMM2 products based on the 1z-nanometer process in the second quarter. Moving forward, we will optimize our product lineup in alignment with customer development schedules and prepare for sample shipments to expand our customer base. For NAND, we will accelerate the transition to advanced nodes and strengthen our portfolio with a focus on high-capacity, high-performance products to meet market demand.
In the previous quarter, our 321-layer product accounted for the largest proportion of NAND production, and we plan to expand the share within our domestic capacity to the 50% level by the end of the year as planned. In a market situation where supply-demand imbalances persist, stable supply capability, the ability to deliver the volumes customers want in a timely manner, is emerging as a core business competitiveness alongside technological proficiency. Therefore, to respond to robust customer demand and mid to long-term growth opportunities, we are continuing investment plans to expand our production capacity. In the short term, to enhance our supply responsiveness, we are pulling forward the mass production schedule for M15X and proceeding with investments to rapidly expand production capacity following the clean room opening of the Yongin Phase 1 in early 2027.
Due to the schedule acceleration and investment expansion, our 2026 CapEx is expected to reach the high KRW 40 trillion range. In the mid to long term, based on discussions with customers and market demand forecasts, we plan to proactively secure infrastructure for future supply capacity. Recently, we announced new investment plans for P&T7 to strengthen advanced packaging capabilities and M17, a new NAND production base. Furthermore, we have announced a mid to long-term plan to create a new domestic semiconductor cluster to prepare for long-term demand beyond Yongin. Going forward, actual fab construction, equipment installation, and production capacity expansion will be pursued in stages comprehensively, considering customer demand visibility, investment efficiency, et cetera. We are planning to prepare for mid to long-term growth opportunities without delay while maintaining CapEx discipline, thereby strengthening both our supply responsiveness and financial soundness. Next, I’d like to speak about the ADR issuance.
On July 10th, we successfully listed our ADRs on the Nasdaq market in the United States. This ADR offering was the largest ever for a foreign company’s IPO in the U.S. This listing holds significance not only from the funding perspective, but also more so as a confirmation of the global market trust in our technological competitiveness and growth potential while broadening our connection points with the next generation computing ecosystem. Building on this, we will strengthen strategic cooperation with major customers and partners and explore new business opportunities. Moreover, through relentless technological innovation, we will contribute to the development of the semiconductor industry and the growth of the AI system. Finally, I will address our goals for financial soundness and shareholder returns. Driven by profits and cash generation capabilities expanded to record levels. Our financial capacity has been further strengthened.
Meanwhile, as structural growth opportunities in the AI era expand, the scale of investment required to realize these opportunities is also increasing significantly compared to the past. In this environment, we prioritize investments in growth opportunities that can generate high profitability and strategic value. At the same time, we aim to secure a financial structure capable of ensuring stable business operations, even amidst market fluctuations, and through this, we intend to continuously share the resulting outcomes with our shareholders. While investment requirements are expected to increase going forward, we believe that our significantly strengthened cash generation capabilities will allow us to meaningfully expand shareholder returns, all while achieving our investment goals for future growth and maintaining our financial soundness targets. We’re currently reviewing various additional execution measures for shareholder returns from multiple angles.
Interpreter/Moderator: 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 누르시기 바랍니다. 질문을 취소하시려면 별표와 2번을 누르시면 됩니다.
Park Seong-hwan, Head of IR, SK hynix: Now Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone.
Interpreter/Moderator: 처음으로 질문해 주실 분은 J.P. Morgan의 Jay Kwon 님입니다.
Park Seong-hwan, Head of IR, SK hynix: The first question will be provided by Jay Kwon from JPMorgan. Please go ahead with your question.
Jay Kwon, Analyst, JPMorgan: 네, 안녕하세요. J.P. Morgan 증권 권재환입니다. 진행 기회 주셔서 감사합니다. 최근 일부 빅테크 회사들이 데이터 센터 임대 사업도 검토하고 있고, 고효율 AI 모델도 등장하고 있고, AI 인프라 투자 둔화 또는 축소에 대한 우려들이 있는데요. 저희 실제 고객들과의 협의 내용에 기반해 보셨을 때 주요 CSP들의 AI 인프라 투자 부분을 어떻게 전망하시는지 궁금합니다. 또한 저희 경영진께서 바라보시는 이런 전망 하에 HBM 및 DRAM과 NAND 수요 전반에 미치는 영향도 같이 설명 부탁드립니다. 감사합니다.
Park Seong-hwan, Head of IR, SK hynix: Good morning, and thank you for taking my questions. Recently we see that some big tech companies are considering leasing data centers and more efficient AI models emerging. As a result, there are some concerns that AI infrastructure investment could slow or even decline. Based on the company’s talks with customers, how do you see some of the major CSPs AI infrastructure investment evolving? Also based on such outlook, could you also explain the implications for demand for HBM, DRAM, and NAND?
Interpreter/Moderator: 네, 질문 감사드리며 답변드리도록 하겠습니다. 최근 일부 빅테크의 데이터 센터 임대 사업 검토나 고효율 AI 모델의 등장을 두고 AI 인프라 투자가 둔화되는 것이 아니냐는 우려가 있다는 점은 잘 알고 있습니다.
Park Seong-hwan, Head of IR, SK hynix: Thank you for the question. We are well aware of the concerns that investment in AI infrastructure may slow down following news reports of some big tech companies exploring data center leasing and introduction of more efficient AI models.
Interpreter/Moderator: 당사는 이러한 움직임이 AI 투자의 축소 과정이라기보다는 그동안 대규모로 구축해 온 AI 인프라의 활용도를 높이고 수익화를 본격화하는 과정으로 보고 있습니다.
Park Seong-hwan, Head of IR, SK hynix: We view these developments not as a sign of AI investment slowdown, but more as a transition towards higher utilization of the AI infrastructure that has already been built at scale and as well as accelerated monetization efforts.
Interpreter/Moderator: 주요 CSP 업체에게 AI 투자는 검색, 광고, 클라우드 그리고 소프트웨어 등 본업의 경쟁력과도 직결되는 만큼 AI 경쟁력 확보를 위한 투자는 견조하게 유지될 가능성이 높다고 생각합니다.
Park Seong-hwan, Head of IR, SK hynix: Given that for major CSPs, AI competitiveness is closely tied to their core competitiveness, including search, advertising, cloud services, and software, we believe investments aimed at strengthening AI capabilities are likely to remain solid.
Interpreter/Moderator: 고효율 AI 모델의 등장 역시 반드시 인프라 수요 감소로 이어지지는 않는다고 생각합니다. 모델과 시스템의 효율이 개선되면 동일한 인프라 내에서 더 많은 사용자가 더 다양한 서비스를 이용할 수 있어 결과적으로 AI 서비스의 접근성과 활용 범위가 넓어지기 때문입니다.
Park Seong-hwan, Head of IR, SK hynix: Likewise, we do not see these more efficient AI models reducing infrastructure demand. Rather, we believe that they will further broaden the AI base, like accessibility and adoption, because as models and systems become more efficient, the same infrastructure can support more users and services.
Interpreter/Moderator: 실제로 최근 고효율 AI 모델에서도 폭발적인 사용자 수요가 나타나는 만큼 효율화는 AI 서비스의 확산과 전체 사용량 증가를 촉진하는 방향으로 작용하고 있습니다.
Park Seong-hwan, Head of IR, SK hynix: It is evidenced by the explosive demand for the recent high-efficiency AI models, which suggest that the higher efficiency is driving broader AI adoption and usage rather than reducing demand for infrastructure.
Interpreter/Moderator: 이러한 판단은 당사가 주요 고객들과 협의하고 있는 중장기 수요에서도 뒷받침되고 있습니다.
Park Seong-hwan, Head of IR, SK hynix: This view is also supported by the medium to long-term demand outlook we have discussed with our key customers.
Song Hyeon-jong, President of Corporate Center, SK hynix: 주요 CSP AI 관련 투자는 중장기적으로 지속될 것으로 예상되며, 고객들과 논의 중인 메모리 수요 역시 그러한 추세를 반영하고 있습니다. 전력 확보나 데이터센터 구축 같은 물리적인 제약으로 개별 프로젝트의 투자 시점에는 다소 변동이 있을 수 있지만, CSP 간 AI 경쟁과 서비스 확대가 이어지는 만큼 내년 이후에도 AI 인프라 투자는 견조하게 지속될 것으로 보고 있습니다.
Interpreter/Moderator: We expect the CSP’s AI-related investment to continue over the medium to long term, and the kind of memory demand being discussed with our customers reflects this trend. Of course, the timing of individual projects may differ due to physical constraints, such as power availability and data center construction. We do believe AI infrastructure investment will remain solid beyond next year, supported by ongoing AI competition among CSPs and continued expansion of AI services.
Song Hyeon-jong, President of Corporate Center, SK hynix: 이에 따라 AI 연산을 직접 담당하는 HBM은 물론 agentic AI를 위한 서버 D램, 그리고 AI 서비스 확산과 데이터 증가에 대응하기 위한 고성능, 고용량 NAND까지 메모리 전반의 수요가 함께 확대될 것으로 전망하고 있습니다.
Interpreter/Moderator: We expect memory demand in general to keep expanding, not only for HBM for AI compute, but also for server D램 to support agentic AI and high-performance, high-capacity NAND to accommodate the expansion of AI services as well as growth in data.
Song Hyeon-jong, President of Corporate Center, SK hynix: 네, 답변 감사합니다. 다음 질문해 주십시오.
Interpreter/Moderator: Thank you very much. We will take the next question.
Moderator: 다음으로 질문해 주실 분은 하나증권의 김록호 님입니다.
Interpreter/Moderator: The following question will be presented by Rokho Kim from Hana Securities. Please go ahead with your question.
Rokho Kim, Analyst, Hana Securities: 안녕하세요. 하나증권 김록호입니다. 질문 기회 감사드리고요. 회사가 얼마 전에 중장기적으로 Capa를 크게 확대할 계획을 제시하셨는데, 이를 뒷받침하는 메모리 수요 전망 근거가 궁금합니다. 혹시 장기 계약 등이나 이런 것들 확보된 수요가 포함된 것인지 설명 부탁드리고요. 그리고 아무래도 Capa를 크게 확대할 계획을 제시하다 보니까 공급 과잉에 대한 우려에 대해서도 조금 생각이 있는데, 그런 부분들에 대해서 회사 측 답변 공유 부탁드립니다. 감사합니다.
Interpreter/Moderator: The company recently presented plans to significantly expand its capacity over the medium to long term. What is the basis for your long-term memory demand outlook that supports this strategy? Does it include demand secured through the long-term agreements? Given the increase in the capacity, there are understandably some concerns in the market about potential oversupply. What is the company’s view regarding such concerns?
Song Hyeon-jong, President of Corporate Center, SK hynix: 네, 질문 감사드립니다. 회사는 AI 확산에 따른 메모리 수요의 구조적 성장에 대한 비유 그리고 주요 고객들과의 중장기 수요 협의를 바탕으로 중장기 Capa 전략을 수립하고 있습니다.
Interpreter/Moderator: Thank you very much for the question. We plan for our medium to long-term capacity strategy based on the structural growth in memory demand, driven by AI expansion, as well as our ongoing discussions with key customers on their longer-term demand.
Song Hyeon-jong, President of Corporate Center, SK hynix: 최근 들어 고객과의 협력은 단순한 거래 관계를 넘어서 보다 장기적이고 전략적인 형태로 확대되고 있습니다. 공급사와 장기 계약 그리고 파트너십을 구축하고자 하는 고객의 의향이 더욱 강해진 것은 AI 생태계의 메모리 수요 증가가 지속될 것임을 반증합니다.
Interpreter/Moderator: Recently, our collaboration with customers is evolving beyond transactional relations into more strategic long-term partnerships. The stronger intent by the customers to reach long-term agreements with suppliers, as well as build partnerships, also it serves as the evidence of the sustained demand coming from the AI ecosystem.
Song Hyeon-jong, President of Corporate Center, SK hynix: 현재 SK hynix가 추진 중인 Capa의 확대는 고객과의 파트너십이 강화되는 가운데, 이를 통해 확보된 시장 수요에 대한 가시성을 바탕에 두고 있습니다.
Interpreter/Moderator: The capacity expansion that the SK hynix is currently planning for is based on the visibility into market demand that has been secured in our partnerships with the customers.
Song Hyeon-jong, President of Corporate Center, SK hynix: 물론 실제 장비 투자와 생산 램프업은 고객 수요의 가시성과 투자 효율성 등을 종합적으로 고려해서 단계적으로 진행할 계획입니다.
Interpreter/Moderator: Of course, the actual capital investment and production ramp-up will be implemented in phases while considering demand visibility, investment efficiency, as well as other factors.
Song Hyeon-jong, President of Corporate Center, SK hynix: 회사의 Capa 확대가 확인된 수요에 기반해서 탄력적으로 이루어질 것인 만큼, 중장기 투자 확대 계획이 곧바로 공급 과잉으로 이어질 가능성은 제한적이라고 생각합니다.
Interpreter/Moderator: Given that our capacity expansion will be executed flexibly in alignment with confirmed customer demand, we do not believe our medium to long-term investment plans will lead to oversupply right away.
Song Hyeon-jong, President of Corporate Center, SK hynix: 네, 답변 감사합니다. 다음 질문해 주십시오.
Interpreter/Moderator: Thank you. Next question please.
Moderator: 다음으로 질문해 주실 분은 메리츠증권의 김선우 님입니다.
Interpreter/Moderator: The following question will be presented by Sunwoo Kim from Meritz Securities. Please go ahead with your question.
Sunwoo Kim, Analyst, Meritz Securities: 안녕하세요. 메리츠 증권의 김선우입니다. 저는 최근 이슈가 되고 있는 장기 공급 계약, 즉 LTA에 대해서 질문드리겠습니다. 타 메모리 피어사들이 최근에 LTA 계약을 맺고 이에 대해서 설명 그리고 발표를 해주시고 계십니다. 앞서 발표문에서 일부 설명해 주셨지만 저희 SK hynix의 LTA 계약에 관한 세부 사항이 궁금합니다. 그 계약의 기간 혹은 가격 구조 같은 세부 사항에 대해서 좀 더 자세하게 설명 부탁드리겠습니다. 감사합니다.
Interpreter/Moderator: My questions are on LTA. The company’s memory peers have recently concluded and announced LTAs. While it was briefly addressed in the company’s briefing, could you also provide more details on SK hynix’s LTA framework such as contract term and pricing structure?
Interpreter/Moderator: 질문 감사드리며 답변드리도록 하겠습니다. 당사가 논의 중인 LTA는 고객과 제품의 특성을 종합적으로 고려해 다양한 형태로 설계되어 있습니다. 계약 기간은 통상 5년을 기본으로 하고 있지만, 구체적인 조건은 고객과 제품에 따라 달라질 수 있습니다.
Interpreter/Moderator: The LTAs we are discussing with our customers are designed in various forms to be more specific to each customer and their products. While the contract term normally is around five years, specific conditions may vary depending on the customer and product.
Interpreter/Moderator: 가격 구조 역시 단일한 방식보다는 가격 변동성에 대응할 수 있도록 다양한 방식을 고객과 협의하고 있습니다. 이를 통해 단기 시장 변동에 따른 불확실성을 줄이고, 고객과 당사의 중장기 사업 안정성을 확보하는 데 초점을 두고 있습니다.
Interpreter/Moderator: Our pricing structure will also not be uniform. We are discussing with customers to adopt a range of pricing mechanisms that can better respond to price volatility. The objective is to reduce uncertainty arising from short-term market volatility while enhancing long-term business stability for both our customers and SK hynix.
Interpreter/Moderator: 한편, 수요 변동성이 메모리 사이클에 미치는 영향력을 고려할 때, 고객의 실질적인 구매 커미트먼트를 확보하는 것도 중요한 요소입니다. 중장기 물량에 대한 고객의 구매 약정과 함께 예치금 등 계약 이행력과 수요 가시성을 높이기 위한 장치를 포함하고 있습니다. 구체적인 조건은 고객별 협의 내용과 계약 구조에 따라 달라질 수 있습니다.
Interpreter/Moderator: At the same time, it is equally important to secure effective purchase commitment, given the impact that demand volatility can have on the memory cycle. In addition to long-term volume commitments, the agreements include mechanisms such as deposits that can strengthen contract implementation and demand visibility. The specific terms will differ depending on each customer’s requirements and the contract structure.
Interpreter/Moderator: 이러한 구조는 고객의 신뢰도 높은 중장기 수요 계획 수립을 지원하고, 당사 입장에서도 수요 가시성을 바탕으로 투자와 생산 계획을 효율적으로 운영하는 데 도움이 될 것으로 기대합니다.
Interpreter/Moderator: Such structure will enable customers to define more reliable long-term procurement plans while allowing us to optimize our investment and production planning based on improved demand visibility.
Interpreter/Moderator: 당사의 전체 판매에서 LTA가 차지하는 비중을 구체적으로 말씀드리기는 어렵지만, 시장 환경과 고객 수요를 고려하여 적정 수준에서 운영할 계획입니다. 이를 통해 실적의 하방 안정성을 높이는 동시에 시장이 우호적일 때 추가 수요와 성장 기회를 활용할 수 있도록 유연성도 유지해 나가겠습니다.
Interpreter/Moderator: While we cannot say how much of our total sales will be covered by LTAs, we intend to maintain it at an appropriate level based on market conditions and customer demand. This approach should enhance the downside resilience of our earnings while maintaining the flexibility to capture incremental demand and growth opportunities when market conditions become more favorable.
Interpreter/Moderator: 당사는 이미 HBM을 중심으로 안정적인 수익성 기반을 확보하고 있으며, NVIDIA를 비롯한 주요 AI 고객과의 장기 협력도 이를 뒷받침하고 있습니다. 앞으로도 HBM 리더십 강화와 함께 LTA를 통해 확보한 수요 가시성과 운영 유연성을 바탕으로 안정성과 수익성을 균형 있게 관리해 나아가겠습니다.
Interpreter/Moderator: We have already built a solid base of profitability centered on HBM, supported by long-term collaborations with major AI customers like NVIDIA. Looking ahead, we will continue to strengthen our HBM leadership as we try to balance stability and profitability based on the demand visibility and operational flexibility secured through our LTAs.
Park Seong-hwan, Head of IR, SK hynix: 네, 다음 질문해 주십시오.
Interpreter/Moderator: Thank you. We’ll take the next question.
Moderator: 다음으로 질문해 주실 분은 Daiwa Capital Markets의 SK Kim 님입니다.
Interpreter/Moderator: The following question will be presented by S. K. Kim from Daiwa Capital Markets. Please go ahead with your question.
S. K. Kim, Analyst, Daiwa Capital Markets: 안녕하세요. Daiwa Securities 김성규입니다. 질문 기회도 감사합니다. 우선 좋은 실적 축하드립니다. 저는 D램 쪽에 한 가지 질문이 있습니다. 2분기 D램의 실적 폭을 보시면, 시장이 기대했던 거 대비해서는 상대적으로 좀 낮았던 것 같습니다. 그 배경이 무엇인지 궁금하고요. 하반기에는 어떻게 전망하시는지, 하반기 방향성에 대해서 알려주시면 감사하겠습니다.
Interpreter/Moderator: Thank you for taking my questions, congratulations on the good performance. My questions are on DRAM. It appears as if DRAM ASP growth in the second quarter fell below market expectations. What are the reasons, and what is the outlook for the second half of the year? We manage the sales mix between HBM and conventional DRAM based on customer demand and some medium to long-term product strategy. In the second quarter, shipments of some high value add products were pushed back into the second half, and changes in the product portfolio appeared to have affected our blended ASP. These factors are likely to gradually ease in the second half. As HBM4 shipments ramp up in earnest and the 1c nanometer conventional DRAM shipment increases, we expect bit growth in the second half to be higher than the level in the first half.
In addition, considering customer demand and the changing product mix, the growing HBM4 sales and the higher contribution from value-add products will have a positive impact on our blended ASP as well. This will result in higher shipment volumes and continued improvement in the product mix, which will push up our ASP as well as earnings in the second half. When running our sales strategy, instead of focusing on short-term price movements or profitability, we consider a comprehensive set of factors including demand visibility, long-term customer relationships, and supply demand dynamics across individual product segments. This principle will remain as we try to capture market growth opportunities while delivering stable and sustainable earnings growth. Thank you. Next question, please. The following question will be presented by Dong Han from SK Securities. Please go ahead with your question. Thank you. My questions are on HBM.
Now, some believe that competitors have made rapid progress in HBM recently. What is the competitiveness of our HBM4 and the key differentiators that will enable the company to maintain its leadership in the HBM market? The HBM4 competitiveness is completed not only by delivering the required performance, but also by the capability to supply at scale with stable yield and consistent quality. SK hynix has consistently demonstrated these capabilities since the HBM2E generation. Our accumulated competitiveness in time to market, product performance, mass production yield, quality, and customer trust are the differentiators that cannot be replicated in a short period of time. Building on this foundation, we began mass production of HBM4 for key customers in the second quarter, with the yield and quality today nearing the levels of HBM3E, which is already in the maturity stage.
Our current focus is on steadily ramping up production capacity. As mentioned earlier, we have also completed HBM4E sample delivery to customers. We have applied optimized manufacturing process with proven technology maturity and production stability. Development is underway smoothly in line with our roadmap, aiming at volume production beginning in 2027. Not stopping there, we are also proactively preparing next-generation technologies. In addition to hybrid bonding, we are developing IHBM technology to effectively provide thermal dissipation in future products such as HBM5. The IHBM integrates cooling elements within the package and is expected to reduce thermal resistance by more than 30%, improving system stability and operational efficiency in high-performance, high-density AI environments. As the AI market continues to expand and AI accelerators become more sophisticated in performance and packaging, we believe customers will place even greater value on partners with proven manufacturing capability, quality, and reliable supply.
Since HBM is a high-value add product, quality issues can result in significant costs for customers and broad impact on overall system. Leveraging our early co-development experience with customers and long-standing strategic partnerships, we will continue to deliver the right products reliably at the right time, while leading the migration to next-generation technologies. This will enable us to sustain our leadership in the HBM market. Thank you. We will take the next question. The following question will be presented by Nicolas Gaudois from UBS. Please go ahead with your question.
Nicolas Gaudois, Analyst, UBS: Good morning. Thanks for taking my questions. What is the status for HBM price negotiations for 2027? Could you please explain the whole situation regarding the contract discussions, including your outlook for pricing for both HBM3, 4, and also HBM4E forthcoming? Thank you.
Kim Woo-hyun, CFO, SK hynix: 현재 주요 고객들과 ’27년 HBM 공급 물량 및 가격을 협의하고 있으며, 견조한 고객 수요를 바탕으로 논의가 순조롭게 진행되고 있습니다. 다만, 개별 고객과의 계약 조건이나 구체적인 가격 내용은 이 자리에서 말씀드리기 어려운 점 양해 부탁드립니다.
Interpreter/Moderator: Thank you for the question. Discussion is underway for 2027 HBM supply volume and pricing with our key customers, which is progressing smoothly, supported by solid customer demand. Of course, we cannot disclose the contractual terms or pricing details for individual customers.
Kim Woo-hyun, CFO, SK hynix: 최근 일반 DRAM 가격이 큰 폭으로 오르고 있는 만큼, 이런 시장 환경이 HBM 가격 협의에도 일부 영향을 줄 수 있다고 생각합니다. 다만 HBM 가격이 일반 DRAM 가격의 움직임만으로 결정되는 것은 아닙니다.
Interpreter/Moderator: With conventional DRAM prices rising sharply in recent months, such market environment may also have some influence on our HBM pricing discussions. Having said that, of course, HBM pricing is not determined solely by conventional DRAM prices.
Kim Woo-hyun, CFO, SK hynix: HBM은 일반 DRAM 대비 더 많은 웨이퍼와 첨단 공정 TSV 및 패키징 캐파 등 상당한 리소스가 투입되는 제품이며, 또한 세대가 진화할수록 고객이 요구하는 성능과 품질 수준이 높아지고 개발과 인증 과정의 복잡성도 커지고 있습니다.
Interpreter/Moderator: Compared with conventional DRAM, HBM requires much greater resources, including more wafer input, advanced manufacturing process, TSV, and packaging capacity. As each generation evolves, customer requirements for performance and quality continue to rise. While product development and qualification become increasingly complex.
Kim Woo-hyun, CFO, SK hynix: 따라서 당사는 일반 DRAM 가격과 수급 환경뿐만 아니라 HBM 생산에 투입되는 리소스와 기회 비용, 기술적 난이도, 그리고 제품이 고객에게 제공하는 가치를 종합적으로 고려하여 고객과 개별적으로 가격을 협의하고 있습니다.
Interpreter/Moderator: Our pricing discussions take into account a comprehensive set of factors, including conventional DRAM pricing and market supply demand, the resources and opportunity costs related with HBM production, technical complexity, and the value that our products deliver to our customers.
Kim Woo-hyun, CFO, SK hynix: 당사의 초점은 고객에게 제공하는 차별화된 가치에 상응하는 적정 수익성을 확보하면서 AI 생태계의 건강하고 지속 가능한 성장을 이끄는데 맞춰져 있습니다.
Interpreter/Moderator: Our objective is to secure appropriate profitability that corresponds to the differentiated value that we provide to the customers while leading the healthy and sustainable growth of the AI ecosystem.
Kim Woo-hyun, CFO, SK hynix: 지금까지 축적해 온 기술 경쟁력과 원가 경쟁력, 안정적인 양산 역량, 고객과의 탄탄한 신뢰 관계와 긴밀한 협력을 바탕으로 향후에도 HBM 사업의 견조한 수익성을 유지하고, 제품 세대 전환과 고객 가치 확대를 통해 AI 시장에서 고객사와 공동 성장할 수 있는 핵심 파트너로서 자리매김하겠습니다.
Interpreter/Moderator: On the back of our accumulated technological leadership, cost competitiveness, stable manufacturing capability, strong trust and collaboration with our customers, we will continue to maintain solid profitability in our HBM business. Through successful product generation migration and continued value creation for customers, we aim to solidify our position as the strategic partner that grows together with our customers in the AI era.
Kim Woo-hyun, CFO, SK hynix: 궁극적으로 보다 장기적인 관점에서 지속 가능한 성장과 수익성을 함께 실현해 나가겠습니다.
Interpreter/Moderator: Ultimately, our focus remains on delivering sustainable growth and profitability over the long term.
Song Hyeon-jong, President of Corporate Center, SK hynix: 네, 감사합니다. 다음 질문해 주십시오.
Interpreter/Moderator: Thank you. The next question, please.
Moderator: 다음으로 질문해 주실 분은 CLSA Korea 증권의 Sanjiv Rana 님입니다.
Interpreter/Moderator: The following question will be presented by Sanjiv Rana from CLSA Securities Korea. Please go ahead with your question.
Sanjiv Rana, Analyst, CLSA Securities Korea: Hi. Good morning. Thank you for taking my question. My question is about the production capacity expansion. In addition to the recent announcements of large scale investments in Korea, there is also a growing discussion about expanding overseas production in countries such as the U.S. and Japan. Could you please elaborate on the company’s investment strategy and its direction, both in Korea and internationally? Thank you.
Moderator: 네, 제 질문은 생산 Capa 확대와 관련된 것입니다. 최근 한국 내에서의 대규모 투자 발표 이외에도 미국이나 일본 등 해외 생산 거점 확대에 대해서도 거론이 되고 있습니다. 당사의 국내외 투자 방향에 대한 설명 부탁드리겠습니다.
Kim Woo-hyun, CFO, SK hynix: 네, 질문 감사드립니다. AI 시대에는 기술 경쟁력뿐만 아니라 고객이 원하는 물량을 적시에 대응할 수 있는 공급 능력도 핵심 경쟁력입니다. 특히 지금처럼 극심한 공급 부족 상황에서는
Song Hyeon-jong, President of Corporate Center, SK hynix: 생태계가 필요로 하는 메모리 제품의 공급이 공급사의 의무이기도 합니다.
Interpreter/Moderator: Thank you for the question. In the AI era, technological leadership alone is not enough. The ability to supply the required volume at the right time has also become a critical part of competitiveness. Especially at a time like today, with extreme supply shortage, it is a duty of the supplier to provide the memory product needed for the ecosystem.
Song Hyeon-jong, President of Corporate Center, SK hynix: 회사의 중장기 투자 방향은 AI 메모리 수요에 맞춰 필요한 투자를 적기에 추진하되, 사업성과 투자 효율을 바탕으로 CapEx를 집행해 나가는 것입니다.
Interpreter/Moderator: The company’s medium to long-term investment direction is that we will make timely investment in accordance with the AI memory demand, while at the same time executing CapEx based on business feasibility and investment efficiency.
Song Hyeon-jong, President of Corporate Center, SK hynix: 중장기적으로는 기존 생산 거점의 활용을 극대화하고 신규 인프라를 구축하는 방안을 종합적으로 고려해 가장 효율적인 방식으로 생산능력을 확보하고자 합니다.
Interpreter/Moderator: For the medium to long term, we intend to secure additional manufacturing capacity through the most efficient combination of maximizing the utilization of our existing production site and developing new infrastructure where necessary.
Song Hyeon-jong, President of Corporate Center, SK hynix: 국내의 경우 이천과 용인은 차세대 DRAM과 AI 메모리의 핵심 생산 거점으로 육성하고, 청주는 NAND와 첨단 패키징을 아우르는 생산 역량을 강화해 나가겠습니다.
Interpreter/Moderator: Inside Korea, we will continue to strengthen the Icheon and Yongin as our key production hubs for next generation DRAM and AI memory, while enhancing Cheongju’s manufacturing capability for both NAND and advanced packaging.
Song Hyeon-jong, President of Corporate Center, SK hynix: 최근 발표된 대규모 투자 역시 장기적인 관점에서 향후 필요한 생산 기반과 인프라를 선제적으로 확보하기 위한 것입니다.
Interpreter/Moderator: The recently announced large scale investment is also part of this strategy to proactively secure the manufacturing base and infrastructure that is needed to support future demand.
Song Hyeon-jong, President of Corporate Center, SK hynix: 향후 생산 거점은 국내외를 구분하기보다 전력, 용수, 인력, 공급망 그리고 반도체 생태계, 고객 접근성 등을 종합적으로 고려해 최적의 방안을 검토한다는 것이 기본적인 방향입니다.
Interpreter/Moderator: Looking ahead for the future production base, rather than differentiating between domestic or overseas, the basic direction is to make the optimum decision based on a range of factors such as power supply, water, human resources, the supply chain, semiconductor ecosystem, as well as customer accessibility.
Song Hyeon-jong, President of Corporate Center, SK hynix: 다만 현재로서는 이미 발표된 투자 계획 이외에는 추가 신규 생산 인프라 투자에 대해서 구체적으로 결정된 사항은 없습니다.
Interpreter/Moderator: Having said that, at this time, there are no further decisions made in addition to the investment that has already been announced.
Song Hyeon-jong, President of Corporate Center, SK hynix: 앞으로도 회사는 증가하는 고객 수요에 대응할 생산 기반을 적기에 확보하는 한편, 기존 자산의 활용과 신규 투자를 균형 있게 검토하며 투자 효율성을 지속적으로 높여 나가겠습니다.
Interpreter/Moderator: Going forward, the company will continue to try to secure the production base at the right time to respond to customer demand, while continuing to enhance investment efficiency by utilizing existing assets and also considering new investment.
Song Hyeon-jong, President of Corporate Center, SK hynix: 네, 다음 질문해 주십시오.
Interpreter/Moderator: Thank you. We’ll take the next question.
Moderator: 다음으로 질문해 주실 분은 대신증권의 유현금 님입니다.
Park Seong-hwan, Head of IR, SK hynix: The following question will be presented by Hyun Kyun Yu from Daishin Securities. Please go ahead with your question.
Hyun Kyun Yu, Analyst, Daishin Securities: 네, 안녕하세요. 대신증권 유현금입니다. 저는 NAND 관련 질문을 드리려고 합니다. 최근에 AI 추론 확산과 KV cache offloading 수요 증가로 eSSD 역할이 빠르게 확대되고 있습니다. HDD 대체용 QLC SSD와 SLC 기반 고성능 제품 등 다양한 제품 세그먼트에서의 경쟁이 예상되는데 저희의 대응 전략과 방향성은 어떤지에 대해서 설명해 주시면 감사하겠습니다.
Interpreter/Moderator: Now, my questions are on NAND. The expansion in AI inference and demand for KV cache offloading is rapidly increasing the role of enterprise SSDs. Could you also discuss your strategy for different product segments, including QLC SSDs for HDD replacement and high performance SSDs based on SLC mode? Competition in these segments also appears to be intensifying.
Song Hyeon-jong, President of Corporate Center, SK hynix: 네. 말씀주신 바와 같이 AI 시장이 학습 중심에서 추론 중심으로 확대되면서 NAND 역할이 AI 시스템 메모리 계층을 구성하는 핵심 요소로 빠르게 변화하고 있습니다.
Interpreter/Moderator: Yes. As the questioner has observed, the AI market is evolving from a training-centric to an inference-centric environment where NAND is rapidly becoming a core component of the AI memory hierarchy.
Song Hyeon-jong, President of Corporate Center, SK hynix: 이에 따라 데이터센터 eSSD를 중심으로 NAND 수요가 빠르게 확대되고 있으며, 이러한 성장세는 앞으로도 지속될 것으로 보고 있습니다.
Interpreter/Moderator: As a result, we also see that demand for NAND is quickly rising, centered on ESSDs, and we believe that this trend is likely to continue.
Song Chang-seop, Head of NAND Marketing, SK hynix: 다만, AI 시대 스토리지 시장은 하나의 기술만으로 대응하기는 어려운 시장이라고 생각을 합니다. 고객마다 요구하는 latency, throughput, power 용량, TCO가 모두 다르기 때문입니다.
Interpreter/Moderator: At the same time, we believe that the AI storage market cannot be addressed with a single technology. Requirements for latency, throughput, power, capacity, and TCO all differ depending on the customer.
Song Chang-seop, Head of NAND Marketing, SK hynix: 고객이 반드시 특정 미디어 기술 자체를 요구하는 것이 아니므로, 중요한 것은 해당 워크로드에서 요구되는 성능과 응답 속도를 안정적으로 구현해 내는 것입니다.
Interpreter/Moderator: Customers are not necessarily asking for specific technologies or media. What matters is the ability to reliably deliver the performance and responsiveness required for each workload.
Song Chang-seop, Head of NAND Marketing, SK hynix: 따라서 AI 시대 NAND의 전략은 SLC, TLC, QLC에 대한 선택이 아니라 고객 워크로드에 맞는 최적의 스토리지 포트폴리오를 제공하는 것이라고 생각합니다.
Interpreter/Moderator: Our NAND strategy for the AI era, we believe, is not about choosing out of SLC, TLC, or QLC. Rather, it is about providing the optimal storage portfolio that is customized to each customer’s workload.
Song Chang-seop, Head of NAND Marketing, SK hynix: 예를 들어서 AI 데이터 레이크나 HDD 대체와 같이 저장 효율과 경제성이 중요한 영역에서는 대용량 QLC 기반 eSSD가 가장 경쟁력 있는 솔루션이 될 것으로 보고 있고, 이에 당사는 해당 제품군을 강화하고 있습니다.
Interpreter/Moderator: For example, in applications like AI data lake and HDD replacement, where storage efficiency and cost competitiveness are important, high-capacity QLC-based eSSDs can be the most competitive solution. Accordingly, we are continuing to strengthen our product lineup in this segment.
Song Chang-seop, Head of NAND Marketing, SK hynix: 한편, KV cache offloading이나 near GPU storage와 같이 AI 시대의 새로운 응용처 영역에 대응하기 위해서 near tier AI storage 제품 개발에도 집중하고 있습니다.
Interpreter/Moderator: At the same time, we are also focusing on developing new tier AI storage solutions to address emerging applications like KV cache offloading and near-GPU storage.
Song Chang-seop, Head of NAND Marketing, SK hynix: SK hynix는 특정 NAND 기술에만 집중하기보다 NAND 특성과 firmware를 함께 최적화하는 솔루션을 통해서 고객이 요구하는 성능을 가장 효율적으로 제공하는 방향으로 개발을 진행하고 있습니다.
Interpreter/Moderator: Rather than focusing on any single NAND technology, SK hynix is developing solutions that optimize the strength of NAND combined with firmware, enabling us to deliver the most efficient performance for each customer workload.
Song Chang-seop, Head of NAND Marketing, SK hynix: 이에 따라 SK hynix는 고성능 TLC eSSD, 대용량 QLC eSSD, SLC 모드 기반 고성능 SSD까지 용도별 제품 포트폴리오를 확장하고 있습니다.
Interpreter/Moderator: As a result, we are expanding our portfolio across multiple usages, including high-performance TLC eSSD, high-capacity QLC eSSD, and high-performance SSDs utilizing SLC mode.
Song Chang-seop, Head of NAND Marketing, SK hynix: 결국 AI 시대에는 하나의 SSD가 모든 워크로드를 담당하는 것이 아니라 워크로드별로 최적화된 스토리지 계층이 구축될 것으로 보고 있습니다.
Interpreter/Moderator: In the end, in the AI era, it will not be a single SSD that will handle all the workload. Instead, AI systems will adopt a storage hierarchy optimized for each workload.
Song Chang-seop, Head of NAND Marketing, SK hynix: SK hynix는 이를 모두 아우르는 포트폴리오로 다양한 AI storage 수요에 선제적으로 대응하고, NAND의 새로운 성장 기회를 지속 확대해 나가도록 하겠습니다.
Interpreter/Moderator: With a comprehensive storage portfolio spanning all of these segments, SK hynix will proactively address the evolving needs of AI storage while expanding new long-term growth opportunities for our NAND business.
Park Seong-hwan, Head of IR, SK hynix: 네, 답변 감사합니다. 다음 질문해 주십시오.
Interpreter/Moderator: Thank you. We’ll take the next question.
Moderator: 다음으로 질문해 주실 분은 NH투자증권의 류영호 님입니다.
Interpreter/Moderator: The following question will be presented by Youngho Ryu from NH Investment & Securities. Please go ahead with your question.
Youngho Ryu, Analyst, NH Investment & Securities: 네, 안녕하세요. NH투자증권의 류영호입니다. 질문해 주셔서 감사하고요. 저는 일단 시장에서 관심이 많은 ADR 관련해서 질문을 좀 드리고 싶습니다. 최근에 ADR 양방향 fungibility가 현재 어떻게 운영되는지 좀 궁금하고요. 그리고 향후 ADR 비중을 추가로 확대할 계획이 있으신지 공유 부탁드리겠습니다.
Interpreter/Moderator: Thank you. My question is on the ADRs, which is receiving a lot of market interest. How is the two-way fungibility of ADRs being managed at this time? Also, does the company have any plans to increase the proportion of ADRs outstanding in the future?
Kim Woo-hyun, CFO, SK hynix: 네, 답변드리겠습니다. 원주의 한국 거래소 상장이 완료된 다음 날인 7월 30일부터 ADR은 원주로 자유롭게 전환할 수 있습니다. 다만 원주의 ADR 전환은 전환 절차와 ADR 전환 한도 제약으로 인해 제한될 수 있습니다.
Interpreter/Moderator: Now, beginning on July 30th, which will be the day after the completion of our stock being listed on the Korea Exchange, the ADRs can be freely converted to the stocks. Conversions of stocks into ADRs may be limited due to the conversion process and the conversion limit as well. Based on some cases of Korean companies with DR programs, the conversion of stocks into ADRs may require the issuer to complete some regulatory filing process, which could take several weeks. In addition, the total number of ADRs outstanding cannot go over the ADR conversion limit. At present, the conversion limit has been set at 17,790,000 shares, equivalent to the number of shares issued in this ADR offering. Whether to increase the proportion of ADRs will be evaluated after looking into the relevant regulatory environment as well as other factors.
At this time, no decisions have been made. Thank you. We will take the last question.
Park Seong-hwan, Head of IR, SK hynix: The last question will be presented by Surim Lee from DS Investment & Securities. Please go ahead with your question.
Interpreter/Moderator: Thank you for taking my questions. Following the recent sale of the company share in Kioxia, as well as the ADR offering, the company has significantly increased its cash position. Could you discuss your capital allocation strategy? In particular, are there any plans for additional shareholder returns this year? The company’s capital allocation strategy is now focusing on maintaining the balance among the three goals. Making timely investments to capture the structural growth opportunities in the AI era, preserving a sound financial position, and enhancing shareholder value through shareholder returns. With regards to shareholder returns, we do realize that there is strong level of market interest, and we are currently evaluating various options for additional shareholder returns.
Due to regulatory requirements and procedural restrictions related to the ADR offering, please understand that we cannot disclose any new material information that was not included in the offering document. While we cannot provide the specifics regarding the format, size, or timing of any additional shareholder return, we do intend to communicate our plans to the market within the year once they have been finalized. Down the road, we will continue to execute investment to support growth in a timely manner, maintain sound financial structure, and pursue the kind of capital allocation strategy that can enhance shareholder value through sustainable cash generation. Thank you very much. That concludes the SK hynix 2026 second quarter earnings release conference.
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