---
title: "SK hynix Reports Record Profit: Operating Margin Reaches 80%, Memory Shortage Projected Until 2030"
description: "SK hynix reported a record third quarter: revenue exceeded 100 trillion won ($78.1 billion), operating profit rose more than sevenfold, and profitability reached 80%. The company projects a memory shortage until 2030 and prepares to bring HBM4 to the forefront."
date: 2026-10-28T16:52:04.178Z
lang: en
url: https://xab.info/en/posts/sk-hynix-record-profit-memory-shortage-2030
tags: [sk-hynix, memory-chips, hbm, semiconductors, earnings, ai]
author: "Darya Fomina"
publisher: "XAB.info"
---

# SK hynix Reports Record Profit: Operating Margin Reaches 80%, Memory Shortage Projected Until 2030

![Two modern SK hynix memory microchips resting on a silicon wafer with green and yellow grid lines](https://xab.info/media/2026/10/28/sk-hynix-rekordnaya-pribyl-defitsit-pamjati-do-2030-goda/sk-hynix-rekordnaya-pribyl-defitsit-pamjati-do-2030-goda-1.webp)

## Key Points

- SK hynix Q3 revenue exceeded 100 trillion won for the first time ($78.1 billion, +327.9% y/y), operating profit grew over sevenfold, and operating margin reached 80%.
- For fiscal year 2026, the company will return nearly $75 billion to investors; the share of free cash flow directed to shareholder returns will be increased to over 50% for 2025–2027.
- SK hynix forecasts the memory shortage will last until 2030 and states that in the current quarter, HBM4 will surpass HBM3E in volume and revenue.
- Over 50% of planned production volumes for 2027–2028 are already allocated under long-term contracts with 14 major clients; phase one of the Yongin complex starts in 2027.

South Korean memory manufacturer SK hynix has published financial results for the third quarter of fiscal 2026 that exceeded analyst expectations across all key metrics. The company's revenue surpassed the 100 trillion won mark for the first time in history, reaching 104.6 trillion won (approximately $78.1 billion) and increasing by 327.9% year-over-year. Operating profit skyrocketed by 632.1% — more than sevenfold — to roughly $62.2 billion, while the annual operating profit margin rose from 47% to 80%, nearly catching up with American competitor Micron. Net income increased by 216% year-over-year to $29.7 billion, although it decreased by 57.7% sequentially (quarter-over-quarter).

### Record Profitability and Return of Capital to Investors

The company attributes this momentum not only to rising memory prices, but also to increased sales volumes of high-value-added products, primarily High Bandwidth Memory (HBM). In the third quarter, SK hynix directed more than $25 billion toward dividend payouts and share buybacks, and for the full fiscal year 2026, nearly $75 billion will be returned to investors. By the end of November, proceeds from investments in Japan's Kioxia capital will be distributed as special dividends. The proportion of accumulated free cash flow returned to shareholders will be increased to over 50% for the period from 2025 to 2027.

### Memory Shortage to Persist Until 2030

In its press release, the company separately addressed market forecasts. According to SK hynix's estimates, the memory shortage in the global market will persist at least until 2030. In the near term, demand will be driven by the corporate segment and "personal AI," while in the long term, it will be propelled by "physical AI," including autonomous driving systems and robotics. This forecast aligns with industry analyst estimates: according to TechInsights Semiconductor Senior Vice President Jeon Tong-chyo, new fabs will not eliminate the shortage, and prices will remain high for another 3 to 4 years.

### HBM4 Takes Center Stage

SK hynix intends to accelerate the expansion of its manufacturing capacity: increasing the share of sixth-generation 10nm-class products, as well as sales volumes of server DDR5 and LPDDR5 modules in SOCAMM form factor. Server DDR5 shipments grew by more than 40% sequentially in the past quarter. By the end of the current year, the M15X plant producing HBM4 will reach peak capacity, and already this quarter, HBM4 will surpass HBM3E in both production volume and revenue, becoming the dominant product in the segment, according to the company. In the NAND sector, the share of 321-layer memory produced in South Korea will grow to over 50% of local volumes this quarter, improving the availability of high-performance, high-capacity SSDs for the enterprise segment; in the medium term, the company will focus on integrating HBF-type memory into AI service infrastructure.

### Long-Term Contracts and 2027 Investments

The portfolio of long-term contracts continues to expand: currently, such agreements have been signed with 14 major clients, including leading cloud providers, and some are negotiating to extend contract terms, which are typically signed for five years. More than 50% of planned production volumes for 2027–2028 have already been allocated under long-term contracts. To support these plans, investments will increase significantly next year: in 2027, the first phase of the Yongin complex will commence mass memory production, while investments will simultaneously flow into facilities both in South Korea and abroad. Specific figures, according to the company, may vary depending on demand, profitability, and investment efficiency.

### Context: Critically Low Inventories and Talks with Intel

SK hynix's financial report comes against the backdrop of an historic shortage in the memory market. According to a Business Korea report citing KB Securities, memory chip inventories at Samsung and SK hynix dropped to less than ten days by the third quarter, and the situation could worsen in 2027 following the rollout of HBM4, the production of which requires more capacity than previous generations. Concurrently, Reuters reports that SK hynix is in preliminary talks with Intel regarding the possibility of manufacturing memory chips in the United States — including through leasing part of an Ohio plant or forming a joint venture with cloud companies; sources emphasize, however, that no decisions have been made yet, and potential disapproval from Seoul could pose an obstacle.

## Fact-Check & Sources

- [SK hynix продлила дефицит памяти до 2030 года — прибыль взлетела в семь раз, а рентабельность достигла 80 % window-new](https://3dnews.ru/1150527/sk-hynix-prodlila-defitsit-pamyati-do-2030-goda-pribilvzletela-v-sem-raz-a-rentabelnost-dostigla-80-) - Primary source: Q3 financial results, revenue 104.6 trillion won ($78.1 billion), operating profit +632.1%, profitability 80%, net income $29.7 billion, plans for HBM4, NAND, contracts, and Yongin investments.
- [Новые фабрики не устранят дефицит памяти — цены останутся высокими ещё 3–4 года](https://3dnews.ru/1149502/iibum-prodolgit-vliyat-na-rinok-pamyati-v-techenie-posleduyushchih-34-let-sohranyaya-tseni-na-visokom-urovne) - Context: TechInsights estimate of high prices persisting for 3–4 years, aligning with SK hynix's forecast of a shortage until 2030.
- [SK Hynix договаривается с Intel о производстве чипов памяти в США – Reuters](https://biz.liga.net/it/news/sk-hynix-dogovarivaetsya-s-intel-o-proizvodstve-chipov-pamyati-v-ssha-reuters) - Preliminary talks regarding US manufacturing (Ohio plant / JV with cloud companies); sources emphasize no decisions have been made.
- [Запасы памяти Samsung и SK hynix почти исчерпаны - складских остатков хватит менее чем на 10 дней](https://www.playground.ru/misc/news/zapasy_pamyati_samsung_i_sk_hynix_pochti_ischerpany_skladskih_ostatkov_hvatit_menee_chem_na_10_dnej-1873174) - Context: According to Business Korea/KB Securities, memory inventories at Samsung and SK hynix dropped below 10 days by Q3.

## FAQ

### What are SK hynix's key financial results for the third quarter?

Revenue reached 104.6 trillion won (approximately $78.1 billion), up 327.9% year-over-year; operating profit surged 632.1% (more than sevenfold) to roughly $62.2 billion, and the operating margin reached 80%. Net income rose 216% year-over-year to $29.7 billion.

### How much capital will SK hynix return to investors and when?

In the third quarter, over $25 billion was directed toward dividends and share buybacks, and for fiscal 2026, nearly $75 billion will be returned to investors. By the end of November, income from Kioxia investments will be paid out as special dividends; the share of free cash flow returned to shareholders will increase to over 50% for 2025–2027.

### How long does SK hynix estimate the memory shortage will last?

The company forecasts that the global memory shortage will persist until 2030, with near-term demand driven by the corporate sector and "personal AI," and long-term demand driven by "physical AI" (autonomous driving, robotics).