SK Hynix is solidifying its position as a leading supplier of AI chips, driven by booming demand from data centres. The South Korean company, a key partner to Nvidia, is experiencing record quarterly earnings due to the surge in high-bandwidth memory (HBM) sales. SK Hynix's HBM business now accounts for over 50% of its memory revenue, with operating margins hitting 42% in Q2 2025.
The company is set to mass produce its next-generation 12-layer HBM3E chips this quarter, further widening its lead over competitors like Samsung and Micron. HBM3E products are expected to constitute approximately half of all HBM chip volume this year. To meet increasing demand, SK Hynix is investing heavily in production capacity, including a $14.7 billion fab in South Korea and a $3.9 billion advanced packaging plant in the United States. These investments reflect a calculated strategy to capitalise on the structural demand for AI, which is projected to drive HBM revenue to $34 billion in 2025.
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