SK hynix (000660.KS) posted unprecedented third-quarter results, with consolidated revenue of 104.6 trillion won ($73.2 billion) and operating profit of 83.3 trillion won ($58.3 billion), sharply expanding its cash capacity for future investment and shareholder returns.
Cash, cash equivalents and short-term financial instruments stood at 114.5 trillion won at the end of the third quarter, crossing the 100 trillion won mark, the company said on the 28th. Borrowings fell by 2.8 trillion won to 15.8 trillion won, lifting net cash to 98.7 trillion won. That puts the company close to the 100 trillion won net cash target it set earlier this year for the end of 2026.
The company plans to use the cash to expand production capacity. Investment is expected to rise significantly from this year's level as domestic and overseas infrastructure spending picks up, including the start of full operations at the first fab in Yongin next year. SK hynix said it will adjust the scale and timing of investment flexibly after closely weighing customer demand, product competitiveness, profitability and investment efficiency.
Long-term memory supply agreements, or LTAs, which run for up to five years, now account for more than half of total transactions based on production capacity for next year and 2028. The company has signed LTAs with 14 large cloud service providers, and is holding early discussions on extending the contract terms beyond the usual five years.