SK Hynix Q2 Net Profit Up 69%, HBM Capacity to Double in 2025
According to reports, South Korea’s leading memory chip manufacturer, SK Hynix, announced its financial results for the second quarter ending June 30, 2025, posting historic highs in revenue and operating profit that significantly surpassed market expectations.
In detail, SK Hynix achieved a quarterly revenue of 22.232 trillion KRW, marking a 35% year-over-year increase and exceeding analyst forecasts of 20.56 trillion KRW. Operating profit soared 69% year-over-year to reach 9.21 trillion KRW, also setting a new company record and beating market estimates. Net profit jumped 70% to 6.9962 trillion KRW, with an operating margin climbing to 41%—an 8 percentage point increase—and a net profit margin of 31%.
The company attributes this outstanding performance to the growing demand for AI-focused memory solutions from major global technology enterprises. Both DRAM and NAND Flash shipments exceeded projections, driven by expanding applications in artificial intelligence. In particular, SK Hynix has ramped up sales of its 12-layer stacked HBM3E products in the DRAM segment, alongside increased NAND Flash sales across various sectors. This combination has reinforced SK Hynix's industry-leading competitiveness in AI memory while maintaining a profitability-driven growth trajectory.
As of the end of Q2, SK Hynix's cash and cash equivalents totaled 17 trillion KRW, an increase of 2.7 trillion KRW compared to the previous quarter. The company's debt-to-equity ratio stood at 25%, with a net debt ratio of 6%, reflecting a substantial net debt reduction of 4.1 trillion KRW quarter-over-quarter. Inventory levels remained stable as customers raised memory orders and product output during the quarter. With new product launches anticipated in the second half of the year, storage chip demand is expected to continue its upward momentum.
Looking ahead, SK Hynix plans to nearly double its HBM production in 2025 compared to the same period in 2024, leveraging its advanced HBM3E product capabilities and mass production capacity to deliver strong financial results. Additionally, preparations are underway to provide HBM4 solutions aligned with customer timelines, further solidifying the company’s position at the forefront of the AI memory market.
The company is also set to introduce server modules featuring LPDDR technology in 2025. Meanwhile, its 16Gb GDDR7 product, currently used in AI GPUs, is being expanded to 24Gb capacity to meet evolving performance requirements. With an increasingly diversified AI memory product lineup, SK Hynix aims to strengthen its leadership in the AI ecosystem.
In NAND Flash, SK Hynix continues to pursue a prudent investment strategy focused on profitability, while advancing product development to respond to improving market conditions. The company plans to boost sales of high-capacity enterprise SSDs using QLC technology and expand its product portfolio with 321-layer stacked NAND Flash, enhancing overall market competitiveness.
Song Hyun-jong, President of SK Hynix Corporate Center, emphasized that the company will initiate targeted investments in 2025 to secure supply capacity for key products such as HBM ahead of 2026 demand. SK Hynix is committed to delivering AI memory products with industry-leading quality and performance, aiming to be a full-stack AI memory provider that meets customer needs and drives market growth.
