Memory Market Conditions Not Signalling Peak Has Passed

SK Hynix maintains that the current memory market conditions are not indicative of having passed their peak. Despite weak memory spot prices, SK Hynix explained the limitations of the spot market's scale, stating it is difficult to fully reflect all changes in the current market environment, and thus it is hard to view the industry trend as signalling a peak-out.

Memory price increases, driven by structural market changes, are expected to continue for some time. SK Hynix forecasts that customer demand will significantly exceed SK Hynix's supply capacity over the next three years. Demand for long-term supply agreements (LTAs) is also growing due to intensifying supply-demand imbalances. Customers now recognize the criticality of memory to such an extent that future price and supply uncertainties are perceived as core business risks, prompting them to comprehensively review structural alternatives through various means, the company explained.

SK Hynix stated that it currently has no plans for additional fab construction beyond the Yongin semiconductor cluster. 'Phase 1' of the Yongin semiconductor cluster, currently under construction, is scheduled for completion in early next year, with investments planned for the production of next-generation products.