SK Hynix unveils $75 billion shareholder return plan after posting record profit

SEOUL, Oct 28 : South Korean chipmaker SK Hynix announced shareholder returns of about $75 billion on Wednesday, after reporting a more than seven-fold rise in quarterly profit as AI infrastructure continues to drive up memory chip prices.

The Nvidia supplier also said it has sold out of DRAM and HBM chips until 2029 as it expands long-term supply deals with major customers.

It also reiterated that a chip shortage is likely to continue through 2030, underscoring demand and downplaying market concern about the durability of AI income.

The chipmaker's shares rallied 8 per cent in morning trade.

SK Hynix said its shareholder return policy for this year will comprise cash dividends of 30 trillion won ($22.62 billion) and share repurchases and cancellations of 60 trillion won, including 40 trillion won announced in August.

To improve mid-to-long-term demand visibility, SK Hynix said it has signed long-term agreements (LTAs) with 14 major customers, while "proactively discussing with a number of customers the possibility of extending the contract terms, which are typically five years."

"The LTA volume secured to date corresponds to more than 50 per cent of total production capacity for 2027 and 2028," it said.

SK Hynix reported record operating profit of 83.3 trillion won for July-September, versus 11.4 trillion won in the same period a year earlier.

That compared with the 76.7 trillion won LSEG SmartEstimate, which is weighted toward estimates from analysts who are more consistently accurate.