SK hynix said it expects the memory upcycle to remain strong as demand tied to artificial intelligence expands, and it outlined plans to strengthen its lead in high-bandwidth memory by applying its 1c-nanometer process to next-generation HBM4E.
In a first-quarter 2026 earnings conference call on Wednesday, the company reported revenue of 12.4296 trillion won and operating profit of 5.2886 trillion won. SK hynix said some demand has softened in PCs and mobile devices due to rising prices, but server memory demand remains strong and is driving the broader market. It added that as AI spreads, demand for high-performance memory is rising quickly and customers are increasingly prioritizing securing supply over price.
The company forecast higher shipments in the second quarter. It said DRAM shipments are expected to rise by a high single-digit percentage from the previous quarter, supported by high-capacity server modules and mobile demand. NAND shipments are expected to increase in the mid-teens, driven by 321-layer products and expanded enterprise SSD sales, it said.
SK hynix again highlighted its HBM competitiveness, saying the business depends on overall strength that includes yield and supply stability as well as performance. It said it is preparing to supply HBM4 in line with customers’ mass-production schedules and that demand over the next three years will far exceed current capacity. Still, it said it will maintain a balanced supply strategy between HBM and conventional DRAM within limited production capacity.
On HBM4E, the company said it plans to apply its 1c-nanometer process to the core die to meet customer performance requirements. It said it aims to provide samples in the second half of the year and pursue mass production in 2027, adding that the 1c-nanometer process has already reached a stable stage in manufacturability and yield.
SK hynix also projected a prolonged supply shortage. It said spot-price swings are not representative of the overall market, and that demand is rising for HBM, server DRAM and enterprise SSDs while supply growth remains limited. If the imbalance persists, the memory price upcycle could last longer than in the past, it said.
The company said changes in AI technology are also supporting demand. It said memory-efficiency technologies are evolving to maximize information processing per unit of memory, creating a virtuous cycle that expands the AI services market and increases memory demand.
On investment and supply strategy, SK hynix said it sees limited risk of oversupply and will proceed as planned with mid- to long-term investments to secure production capacity, centered on its Yongin cluster. It said long-term supply agreements can improve demand visibility, but current supply constraints make it difficult to meet all customer requests.
SK hynix also outlined financial and shareholder-return plans. It said securing financial soundness with net cash of more than 100 trillion won and expanding dividends are goals that can be pursued at the same time. It added that it plans to prepare additional shareholder-return measures, including share buybacks and cancellations, within the year.
The company said it is also pursuing access to U.S. capital markets. It said it has submitted a registration statement for an ADR listing and is aiming to list within the year, with details to be decided based on market conditions and other factors.
* This article has been translated by AI.
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