SK hynix signs memory chip supply agreements for 2027 and 2028

SK hynix announced on October 28, 2026 that it had signed long-term memory chip supply agreements with 14 major customers, including global cloud providers. The volumes covered exceed half of its total production capacity in 2027 and 2028, the manufacturer said in its quarterly results.

In July, SK hynix mentioned approximately 10 customers under contract without disclosing the share of capacity covered. The reported number of customers has therefore increased, but the comparison does not make it possible to measure the increase in volumes covered. The company is also discussing extensions with some customers, separate from the agreements already signed.

The contracts generally last five years. Their prices vary according to the market, customers and products, within agreed ranges whose limits are not public. ChosunBiz reports that commitments such as deposits are intended to help turn purchasing plans into orders and deliveries.

These agreements give customers visibility into their supplies and provide SK hynix with a demand base for planning its production. The manufacturer says prices for its key products have risen, driven by demand for memory for artificial intelligence.

Some memory products have already seen sharp price increases. According to a DRAMeXchange measure reported by the Seoul Economic Daily, the average price of a DDR4 product reached 26 dollars at the end of the third quarter, compared with 6.3 dollars a year earlier. This measure covers a specific product and does not demonstrate the effect of SK hynix’s contracts on other buyers.

HBM4 shipments gain momentum

HBM, or high-bandwidth memory, is placed near accelerators in artificial intelligence servers to supply them with data quickly. SK hynix says its sales of DDR5 for servers increased and that HBM4 shipments gained momentum in the third quarter. The manufacturer expects HBM4 to surpass HBM3E in volume and revenue in the fourth quarter.

The company has not described all of the contracted capacity as reserved for artificial intelligence. If supply remains tight, PC manufacturers and other businesses could face higher costs or longer lead times. The announcement does not make it possible to quantify these consequences.

SK hynix expects a memory shortage through 2030 and is preparing to ramp up its M15X site, which it aims to bring to full capacity by the end of the year, as well as additional investments in 2027. The shortage remains a projection by the manufacturer.

Results driven by demand

In the third quarter, SK hynix’s preliminary consolidated revenue reached 104,615.5 billion won, up 32% from the second quarter. Operating profit rose 38% to 83,333.8 billion won. Net profit stood at 39,775.6 billion won, below the previous quarter’s 93,922.6 billion won. These figures may change following an independent review.

The company expects to return approximately 100,000 billion won to shareholders for 2026, including at least 30,000 billion won in dividends and at least 60,000 billion won in share buybacks and cancellations. This total includes the 40,000 billion won program announced in August, under which the shares have already been repurchased. The special dividend includes gains realized on its investment in Kioxia.