During its first-quarter (Q1) earnings call for 2026, SK Hynix disclosed that it is putting into effect a comprehensive supply strategy that encompasses both High Bandwidth Memory (HBM) and general-purpose DRAM. Presently, there is robust demand for key memory products, which has outstripped the company's supply capabilities. SK Hynix is actively exploring the most favorable timing for supply to foster balanced growth within the AI sector. Regarding HBM4, the company plans to increase its supply through collaboration with customers. In terms of expanding production capacity, SK Hynix has commenced the construction of its P&T7 plant in Cheongju, South Korea. This facility will be dedicated to advanced packaging processes, including HBM, with an estimated investment of 19 trillion Korean won. Considering the ongoing shortage in memory supply, the cycle of price increases may be prolonged, with a tight supply of general-purpose memory anticipated to continue until 2027. In Q1 2026, SK Hynix achieved unprecedented consolidated revenue, operating profit, and net profit for a single quarter. Its revenue exceeded 50 trillion Korean won for the first time, and its operating profit saw a year-on-year increase of 405.5%.
