SK Hynix revealed during its Q2 earnings call that the company is currently negotiating with major customers regarding the supply volume and pricing of high-bandwidth memory (HBM) for 2027, with positive progress.
SK Hynix’s Q2 earnings also confirmed: HBM4 entered mass production and began shipping in Q2 2026, and the company will expand capacity in the second half of the year. HBM4E engineering samples were delivered to customers in the first half of the year.
SK Hynix HBM Pricing Logic: Negotiations Integrate Eight Key Factors
According to SK Hynix’s remarks during its Q2 earnings call, its HBM pricing uses a multi-factor assessment model. The company negotiates pricing with each customer one by one, covering the following factors:
· Wafer costs
· Advanced process technology
· Through-silicon via (TSV) technology
· Packaging technology
· Capacity investment
· Technical complexity
· Opportunity costs
· Product value
Market attention is focused on the fact that SK Hynix holds a leading advantage in global HBM market share, and the outcome of the 2027 pricing negotiations will directly affect the cost structure of the AI chip supply chain. HBM already accounts for more than 63% of the total cost of AI chips, and the memory makers’ pricing power is effectively the pricing power of AI compute.
Andy Wong: Market Focuses on Concerns Over “Extracting Too Much Supply-Chain Profit”
According to market data, on Tuesday, South Korea’s stock market saw heavy selling pressure: the KOSPI index fell 10.84%, SK Hynix shares closed down more than 14%, and Samsung Electronics dropped more than 13%. SK Hynix’s market capitalization fell by nearly $50 billion. It rebounded briefly by about 2% at the open on Wednesday, but then weakened; by midday, the decline had widened to more than 8.3%.
Andy Wong, a multi-asset portfolio manager at Pictet Hong Kong, said: “Investors want to see certain factors that would change the view that SK Hynix is extracting too much profit from the supply chain.” SK Hynix, meanwhile, responded in the call to concerns about slowing AI investment, saying that moves by large technology companies “are not a process of cutting AI investment, but a process of improving utilization rates and accelerating the monetization of large-scale AI infrastructure.”
FAQ
What is the latest progress in SK Hynix’s 2027 HBM pricing negotiations?
According to SK Hynix’s remarks during the Q2 earnings call, the company is in discussions with major customers regarding 2027 HBM supply volume and pricing, and the talks are progressing smoothly. The pricing logic integrates eight factors, including wafer costs, advanced process technology, TSV, packaging technology, and more. It is negotiated with each customer one by one—not simply following traditional DRAM market pricing.
What are the latest mass production developments for HBM4 and HBM4E?
According to SK Hynix’s Q2 earnings, HBM4 entered mass production and began shipping in Q2 2026, and the company will expand capacity in the second half of the year. HBM4E engineering samples were delivered to customers in the first half of the year.
How did SK Hynix’s stock perform in the market on Tuesday?
According to market data, SK Hynix shares fell more than 14% on Tuesday (KOSPI dropped 10.84%, and Samsung Electronics fell more than 13%), with its market capitalization evaporating by nearly $50 billion. By midday on Wednesday, the decline had widened to more than 8.3%.
