SK Hynix, the supplier of high-bandwidth memory (HBM), plans to finalize orders for its 2026 HBM production by the end of June. CEO Kwak Noh-jung announced at the company’s annual shareholders’ meeting that discussions with customers regarding next year’s supply volume are nearing completion, ensuring stronger revenue stability amid growing demand.
The company is also increasing sales visibility through early agreements, while recent US tariffs have further prompted customers to secure supply in advance. SK Hynix has already sold out its planned HBM supply this year and is shipping its flagship 12-layer HBM3E to major customers, including Nvidia. The company recently delivered early samples of its next-generation 12-layer HBM4, the first to mass-produce the sixth-generation HBM in the second half of this year.
CEO Kwak Noh-jung emphasized that the company is securing long-term agreements with customers to enhance sales visibility, given the high investment and extended production cycles required for HBM. He dismissed concerns that emerging low-cost AI models, such as China’s DeepSeek, could weaken HBM demand. Instead, he stated that the broader adoption of AI will drive sustained growth in AI memory requirements.
SK Hynix expects the HBM market to expand more than 8.8 times this year compared to 2023, driven by the increasing adoption of GPUs and application-specific integrated circuits (ASICs). Demand for enterprise solid-state drives, another key AI-related memory product, is also projected to grow 3.5 times over the same period. The company plans to ramp up capacity at its Cheongju M15X fab, set to be completed by the end of the year, to support HBM production using advanced 10nm-class DRAM technology.
The company’s market share in HBM exceeds 50%. HBM now accounts for a growing portion of its total DRAM sales, surpassing 40% in the last quarter of 2023 and expected to exceed 50% this year.
SK Hynix also announced its long-term expansion strategy, including mass production at the upcoming Yongin Cluster, scheduled to commence in early 2028. Meanwhile, geopolitical factors such as potential US tariffs on imported semiconductors have accelerated customer orders, with companies rushing to secure supply ahead of new trade restrictions. SK Hynix remains confident in the sustained demand for AI memory products despite global economic uncertainties.
SK Hynix is also in talks with key clients to supply SOCAMM, a low-power LPDDR-based memory module optimized for data center servers, as demand for such solutions rises. The company plans to begin mass production of SOCAMM later this year, aligning with its broader strategy to expand beyond HBM. Additionally, it is developing other high-performance memory solutions, including CXL and LPCAMM2, to strengthen its position in the AI-driven market.
In a leadership update, SK Hynix appointed Han Ae-ra as the new chair of its board following the annual shareholders’ meeting. Han, a legal expert and professor at Sungkyunkwan University, has an extensive background in law as a former judge and lawyer. The company stated that her expertise will help enhance corporate governance and audit functions while improving board diversity.
