SK Hynix Commits $8B to ASML Tools as Memory Demand Outstrips Supply
SK Hynix boosted quarterly operating profit five-fold to 37.61 trillion won and plans to raise capital spending above 30.2 trillion won to expand AI memory capacity. The company committed $8 billion to ASML’s advanced lithography tools as high-bandwidth memory demand is set to exceed supply over the next three years.
1. SK Hynix Profit Surge
SK Hynix recorded operating profit of 37.61 trillion won in the latest quarter, a five-fold increase year-on-year, driven by strong sales growth to 52.58 trillion won. This marks one of the largest quarterly margin expansions in the company’s history, fueled by robust AI memory product demand.
2. Increased Capital Expenditure
Management announced plans to exceed the previously scheduled 30.2 trillion won capex for 2025, signaling a significant step-up in spending to boost production capacity. The elevated investment is aimed at scaling high-bandwidth memory lines, which command higher margins than conventional DRAM and NAND products.
3. ASML Equipment Order
As part of its expansion, SK Hynix committed $8 billion to procure advanced lithography systems from ASML, reinforcing a multi-year partnership. This order is expected to support deployment of next-generation nodes needed for HBM manufacturing, helping ASML secure a substantial revenue stream.
4. Market Outlook and Risks
High-bandwidth memory demand is projected to exceed supply for the next three years, sustaining pricing momentum across the memory sector. However, the industry faces risks from rapid technology shifts, infrastructure constraints and potential competitor entries that could pressure long-term growth.