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SK hynix Bets Big on HBM4 to Dominate AI Memory Market

SK hynix is aggressively increasing capital expenditure to solidify its lead in the next-generation HBM4 memory market, capitalizing on surging AI demand. The company expressed strong confidence from customers for its HBM4 products, aiming to replicate its dominance from previous HBM generations. This follows a record financial year in 2025, with profits driven overwhelmingly by AI-related memory sales. To address expected supply shortages, the firm is expanding production capacity and establishing a new AI-focused entity in the United States.

Key Points: SK hynix Plans Capex Surge for HBM4 Market Lead

  • Plans major capital expenditure increase
  • Aims for dominant HBM4 market share
  • Reports record 2025 sales and profit
  • Expects AI memory shortage to intensify
3 min read

SK hynix doubles down on capital expenditure to cement next-gen HBM4 market lead

SK hynix to boost capital expenditure, targeting overwhelming HBM4 market share after record 2025 profits driven by AI memory demand.

"For HBM4, customers...prioritizing our products over others. - Kim Ki-tae"

Seoul, January 29

SK hynix expressed confidence Thursday in capturing an overwhelming share of the HBM4 market to replicate its dominance in earlier generations of high bandwidth memory. The chipmaker aims to secure its lead in the artificial intelligence sector following a report of record annual profit for 2025.

According to a report by the Korea Herald, the company plans to increase capital expenditure this year to address the rapid growth in demand for AI memory. During an earnings call, the chipmaker confirmed that preparations for HBM4 are proceeding on schedule and in alignment with timelines established with customers.

"For HBM4, customers and infrastructure partners show strong preference and expectations for our products, prioritizing our products over others," said Kim Ki-tae, vice president and head of HBM sales and marketing at SK hynix. He noted that the company intends to extend its market position to HBM4 to take up an overwhelming share similar to its performance with HBM3 and HBM3E.

"SK hynix's HBM4 represents a major technical achievement that will enable customers' requirements based on the existing 1b nanometer process. Using our proprietary advanced packaging technology MR-MUF, we plan to secure yields comparable to the 12-high HBM3E products," Kim added.

This technical focus follows a record financial performance in 2025, where annual sales reached 97.1 trillion won (USD 70.4 billion) and operating profit hit 47.2 trillion won. The company attributed these all-time highs to surging demand for AI-related products.

Memory is expected to remain in a supply shortage driven by expanding AI infrastructure investments. SK hynix said it expects inventory shortages to intensify in the second half of this year, as surging market demand more than offsets the recent spike in memory prices.

To mitigate the supply-demand imbalance, the company will add new capacity for HBM chips at its M15X fab. Capital expenditures are expected to remain in the mid-30 per cent range of revenue to fund this expansion. Additionally, the company announced it will establish an AI-focused entity in the United States to act as a full-stack AI memory creator.

Regarding international trade pressures and potential US tariffs on companies without domestic production facilities, the company remains observant. "Building fabs overseas involves numerous factors both inside and outside the company to consider," the report quoted Song Hyun-jong, president and head of the corporate center on the earnings call. "So for now, we will monitor discussions between the governments and communicate the company's direction at a later date."

- ANI

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Reader Comments

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Priya S
The numbers are mind-boggling! 47.2 trillion won in operating profit? That's more than the GDP of some small countries. It shows how critical the AI hardware race has become. I hope Indian tech companies are paying attention and investing in R&D, not just software services.
A
Aman W
Good for them, but this concentration of advanced memory production in one or two companies is a risk for everyone else. The article mentions potential US tariffs too. India should use this as an opportunity to attract some of this high-tech manufacturing with our incentive schemes. "Make in India" needs to include cutting-edge chips.
S
Sarah B
The technical details about the 1b nanometer process and MR-MUF packaging are impressive. It's a reminder that the AI revolution is built on these incredible physical engineering achievements, not just algorithms. The planned shortage in the second half of the year could slow down AI projects globally, including in India.
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Vikram M
While I admire their confidence, I hope this doesn't lead to complacency or anti-competitive practices. A healthy market needs multiple strong players. Samsung and Micron need to step up. From an Indian consumer perspective, we just need reliable and affordable components for the devices and services we use.
K
Karthik V
Setting up an AI-focused entity in the US is a smart move considering the geopolitical climate. It shows they're playing the long game. Indian IT giants like TCS and Infosys, who are big AI service providers, should be building deeper ties with memory makers like SK hynix to secure their supply chains. Jai Hind!

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