Conference Call Following Earnings Announcement on October 29
HBM Remains Sold Out Since 2023
"Supply to Remain Tight Relative to Demand"
"Sample Production and Mass Supply Already Underway"
Entering a Semiconductor Super Cycle... "Different from Eight Years Ago"
"Structural Constraints on DRAM Supply Growth"
On October 29, SK Hynix stated that it expects the supply of its flagship product, high bandwidth memory (HBM), to remain tight relative to demand through 2027. This suggests that the prolonged state of excess demand will continue for the foreseeable future.
On the 22nd, visitors attending the "2025 Semiconductor Expo" held at COEX in Gangnam-gu, Seoul, are viewing SK Hynix's exhibit related to HBM4. 2025.10.22 Photo by Yoon Dongju
During its third-quarter earnings conference call on the same day, SK Hynix explained, "Demand for HBM is rapidly expanding on the back of the medium- to long-term growth of the artificial intelligence (AI) market, making it difficult for supply to catch up with demand in the short term."
The company further noted, "HBM products have remained sold out since 2023," and added, "Prices are currently set at levels that allow us to maintain profitability."
Although HBM accounts for only around 20% of SK Hynix's total DRAM shipments, it is estimated that more than half of the company's operating profit is generated from HBM.
SK Hynix has established a mass production system for its sixth-generation HBM4 and plans to begin shipments in the fourth quarter, with a full-scale sales expansion set for next year. Regarding this, the company stated, "This year, numerous external variables made it difficult not only to finalize supply volumes but also to determine the product mix," and added, "As the required performance specifications for HBM products evolved, it took more time than expected to conclude supply contracts."
The company emphasized, "SK Hynix is already meeting customer needs with the highest specifications through its 'number one in the HBM industry' technological leadership," and added, "We produced product samples tailored to customer requirements faster than any other company in the industry and have already begun production for mass supply."
SK Hynix is also focusing on expanding its production facilities. The company announced plans to open its M15X plant (fab) in Cheongju, North Chungcheong Province, ahead of schedule and to begin full-scale HBM production there starting next year. The company explained, "After two years of construction, we have opened the M15X fab early and started bringing in the first equipment," and added, "We are preparing to contribute to increased HBM production starting next year. As memory demand is rising much faster than previously anticipated, we are accelerating capacity expansion as much as possible to respond. We are also working to advance the timeline for the first phase of the Yongin Cluster fab."
SK Hynix has determined that, contrary to expectations, the memory market has entered a super cycle this year, with demand surging across all product lines. The company specifically analyzed that "current demand is based on much broader applications, driven by the shift to the AI paradigm," and noted that this is different from the super cycle experienced in 2017-2018.
Demand for not only AI servers but also general servers is surging, and SK Hynix expects total server set shipments next year to increase by about the high teens in percentage terms. On the supply side, the company analyzed that as the production share of HBM expands, DRAM supply will inevitably be limited.
SK Hynix stated, "These characteristics are expected to structurally constrain the increase in DRAM supply, thereby serving as factors that will support the prolongation of the current memory super cycle."
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