SK hynix said the possibility that its mid- to long-term capacity expansion plan will lead to oversupply is limited. It said actual facility investment and capacity increases will proceed step by step after confirming customer demand.
SK hynix said on the 29th during its second-quarter earnings conference call this year that it is establishing a capacity strategy based on confidence in the structural growth of memory demand driven by the spread of AI and on mid- to long-term demand discussions with major customers.
It added that recent cooperation with customers is expanding beyond a simple transaction relationship into a long-term and strategic form, and said that customers' stronger intent to build long-term contracts and partnerships with suppliers supports the view that memory demand will continue in the AI ecosystem.
The company emphasized that its ongoing capacity expansion is based on mid- to long-term demand visibility secured through cooperation with customers. However, it plans to execute actual equipment investments and production plans flexibly, taking into account customer demand and investment efficiency comprehensively.
SK hynix said that because capacity expansion is carried out flexibly based on confirmed demand, the possibility that mid- to long-term investment expansion plans will immediately lead to oversupply is limited.