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Long-term deals lock in three years of demand
South Korean chipmaker SK Hynix said its available supply of DRAM and high-bandwidth memory, or HBM, is effectively sold out through 2029, based on signed long-term agreements and volumes under detailed discussion with customers.
The company disclosed the outlook during its third-quarter 2026 earnings call. SK Hynix said the pending orders are tied to customers’ concrete purchasing plans and therefore have a high likelihood of becoming firm demand. The chipmaker is expanding long-term supply agreements to make future demand more predictable and translate it into steadier revenue and profit growth.
More than 90 trillion won planned for shareholders
SK Hynix also announced plans to return more than 90 trillion won to shareholders for the 2026 fiscal year. That includes at least 30 trillion won in cash dividends and more than 60 trillion won in share repurchases and cancellations. The company plans to use more than half of its free cash flow after capital expenditures for the program.
Shares will be purchased quarterly, with the board determining the amount after reviewing the stock price, the company’s valuation and available cash flow. SK Hynix said it considers its shares undervalued relative to the earnings and cash flow the business generates, and views canceling repurchased shares as an effective way to increase per-share value.
Most of the returns from SK Hynix’s investment in Japanese chipmaker Kioxia will also be distributed as a special dividend. The company plans an initial payment of 10,000 won per share in the third quarter, with the remainder reflected in its year-end 2026 dividend after the investment results are finalized.
SK Hynix President Kwak Noh-jung said the benefits shared with investors should grow alongside the company’s business and investment gains.
HBM4 production improves
SK Hynix said manufacturing yields for HBM4, its next-generation high-bandwidth memory, have exceeded its previous target, prompting the company to raise that goal. Yields for the earlier HBM3E product have also surpassed the level the company had considered mature.
HBM is a type of advanced memory designed to handle large amounts of data at high speed. SK Hynix expects HBM4 to overtake HBM3E in both shipments and revenue beginning in the fourth quarter.
The company said its factory expansion is unlikely to create a memory glut because advanced products and increasingly complex manufacturing require more production resources for the same output. SK Hynix plans to build infrastructure for long-term demand while installing equipment and adding capacity gradually, based on customer needs and expected investment returns.
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