On the 29th, SK Hynix stated that it expects the supply of its flagship product, high-bandwidth memory (HBM), to remain tight compared to demand through 2027. This means that the prolonged state of excess demand is expected to persist for the foreseeable future.

During its third-quarter earnings conference call, SK Hynix explained, "Demand for HBM is expanding rapidly, driven by the medium- to long-term growth of the artificial intelligence (AI) market. As a result, it will be difficult for supply to catch up with demand in the short term."

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The company added, "HBM products have remained sold out since 2023," and explained, "Prices are currently set at a level that allows us to maintain profitability."

Although HBM accounts for only about 20% of SK Hynix’s total DRAM shipments, it is estimated that more than half of the company’s operating profit comes from HBM.

SK Hynix has established a mass production system for the sixth-generation HBM4 and will begin shipping it in the fourth quarter, with plans to expand sales in earnest next year. The company commented, "This year, various external factors made it difficult not only to determine supply volumes but also to finalize the product mix. As performance requirements for HBM products changed, it took longer than expected to conclude supply contracts."

The company also emphasized, "SK Hynix is already responding to customer needs by delivering the highest specifications through its industry-leading HBM technology. We produced product samples tailored to customer requirements faster than any other company in the industry and have 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. "After two years of construction, we have opened the M15X fab early and started bringing in the first equipment," the company explained. "We are preparing to contribute to increased HBM production from next year. As memory demand is rising much faster than previously expected, we are also working to expand production capacity as quickly as possible." The company added that it is also working to accelerate the timeline for the first phase of the Yongin cluster fab.

On October 22, at COEX in Gangnam-gu, Seoul, the SK Hynix booth at the 'Semiconductor Exhibition (SEDEX) 2025' displayed the actual sixth-generation high-bandwidth memory, HBM4. Photo by Yonhap News

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SK Hynix believes that the memory market has entered a supercycle this year, with demand surging across all product lines, contrary to earlier expectations. The company noted, "Current demand is based on a much broader range of applications, thanks to the shift toward the AI paradigm," and analyzed that this is different from the supercycle of 2017-2018.

Demand for not only AI servers but also general servers is surging, and the company expects total server set shipments next year to increase by about the high teens in percentage terms. On the supply side, SK Hynix explained that as the production share of HBM increases, DRAM supply will inevitably remain limited.

SK Hynix stated, "These factors are expected to structurally constrain the increase in DRAM supply, thereby supporting the prolongation of the current memory supercycle."