Seoul [South Korea], January 29 (ANI): SK hynix expressed confidence Thursday in capturing an overwhelming share of the HBM4 market to replicate its dominance in earlier generations of high bandwidth memory. The chipmaker aims to secure its lead in the artificial intelligence sector following a report of record annual profit for 2025.

According to a report by the Korea Herald, the company plans to increase capital expenditure this year to address the rapid growth in demand for AI memory. During an earnings call, the chipmaker confirmed that preparations for HBM4 are proceeding on schedule and in alignment with timelines established with customers.

'For HBM4, customers and infrastructure partners show strong preference and expectations for our products, prioritizing our products over others,' said Kim Ki-tae, vice president and head of HBM sales and marketing at SK hynix. He noted that the company intends to extend its market position to HBM4 to take up an overwhelming share similar to its performance with HBM3 and HBM3E.

'SK hynix's HBM4 represents a major technical achievement that will enable customers' requirements based on the existing 1b nanometer process. Using our proprietary advanced packaging technology MR-MUF, we plan to secure yields comparable to the 12-high HBM3E products,' Kim added.

This technical focus follows a record financial performance in 2025, where annual sales reached 97.1 trillion won (USD 70.4 billion) and operating profit hit 47.2 trillion won. The company attributed these all-time highs to surging demand for AI-related products.

Memory is expected to remain in a supply shortage driven by expanding AI infrastructure investments. SK hynix said it expects inventory shortages to intensify in the second half of this year, as surging market demand more than offsets the recent spike in memory prices.

To mitigate the supply-demand imbalance, the company will add new capacity for HBM chips at its M15X fab. Capital expenditures are expected to remain in the mid-30 per cent range of revenue to fund this expansion. Additionally, the company announced it will establish an AI-focused entity in the United States to act as a full-stack AI memory creator.

Regarding international trade pressures and potential US tariffs on companies without domestic production facilities, the company remains observant. 'Building fabs overseas involves numerous factors both inside and outside the company to consider,' the report quoted Song Hyun-jong, president and head of the corporate center on the earnings call. 'So for now, we will monitor discussions between the governments and communicate the company's direction at a later date.' (ANI)