SK hynix said Wednesday that it has signed Long-Term Agreements (LTAs) with 14 major customers, including large global cloud service providers (CSPs). The company is proactively discussing extending contract periods beyond the typical five years with some customers.
The LTA volumes secured to date account for more than 50% of total production capacity in 2027 and 2028. The company explained that it has established a structure that ensures stable profitability while allowing flexible response to market changes by adopting a method that reflects market conditions within the price range agreed upon with customers.
Based on the secured demand visibility, SK hynix is also moving to expand its production capacity. With infrastructure investments at home and abroad becoming active, including the full-scale operation of the Yongin Phase 1 fab next year, the investment scale is expected to increase significantly compared to this year.
However, the company plans to flexibly adjust the scale and timing of investments by carefully considering customer demand, product competitiveness, profitability, and investment efficiency.
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