SK hynix Inc.

• Board approves resolution on August 19 to repurchase and fully cancel 40 trillion won of treasury shares
• Decision reflects the view that intrinsic value—driven by business competitiveness and cash generation capability—is underrepresented in current share price
• Largest treasury share cancellation in the history of the South Korean listed companies; to be executed ahead of schedule within program period
• Company to expand shareholder return target from the previous "within 50% of cumulative FCF" to "over 50%"
• Parallel execution of share repurchases/cancellations alongside dividends; Fixed dividends and special dividends also under consideration to expand payouts

SEOUL, South Korea, Aug. 19, 2026 /PRNewswire/ -- SK hynix Inc. (or "the company", www.skhynix.com) announced today that its Board of Directors has approved a resolution to repurchase and fully cancel 40 trillion won worth of its own shares. The Company also revealed plans to return "over 50% of cumulative Free Cash Flow (FCF)" generated during the program period (2025-2027), adopting a framework centered on the parallel execution of share repurchases and cancellations alongside cash dividends.

Following the Board meeting held earlier today, the Company formally disclosed the share repurchase and cancellation resolution along with the shareholder return plan via a regulatory filing.

The decision stems from the assessment that the Company's intrinsic value—underpinned by its business competitiveness, robust cash generation capability, and mid-to-long-term growth potential—is not fully reflected in its current stock price.

SK hynix continues to record record-breaking financial performance, maintaining its leadership in the AI memory market. As of the end of the second quarter of this year, the Company's net cash stood at approximately 69 trillion won, demonstrating significantly improved cash generation capability.

The total planned amount for the share repurchase is 40 trillion won. Based on the closing stock price of 1,662,000 won on the day prior to the Board resolution, this represents approximately 24.07 million shares, or about 3.3% of total issued shares (730,492,365 shares). The repurchase period is scheduled to run for approximately three months starting August 20, with all repurchased shares set to be cancelled upon completion of the acquisition.

This initiative accelerates the execution of the existing shareholder return program ahead of schedule. In November 2024, SK hynix announced a program to execute shareholder returns within the range of 50% of its three-year (2025-2027) cumulative FCF, noting that it would consider early execution prior to the program's expiration if FCF increased meaningfully due to improved operational performance.

The 40 trillion won program marks the largest treasury share cancellation ever conducted by a South Korean listed company. The Company noted that progress toward its financial health targets remains on track, affirming its commitment to maintaining a stable financial structure while delivering sustained shareholder value.

Through today's regulatory filing, SK hynix announced plans to pursue an expansion of its total shareholder return target from the previous "within 50% of cumulative FCF" to "over 50% of cumulative FCF". Under the framework, shareholder returns will be executed through a dual-track approach running share repurchases/cancellations alongside cash dividends, while options to expand payouts—including the existing fixed dividends and special dividends—are also under consideration.

SK hynix emphasized that it intends to pursue additional shareholder returns within the program period through the parallel execution of share repurchases/cancellations and dividends, by taking into account cash flows, market conditions, and distributable profits, adding that specific details regarding scale and execution will be announced following Board approval at the time of its third-quarter earnings release.

About SK hynix Inc.

SK hynix Inc., headquartered in Korea, is the world's top-tier semiconductor supplier offering Dynamic Random Access Memory chips ("DRAM") and flash memory chips ("NAND flash") for a wide range of distinguished customers globally. The Company's common shares are traded on the Korea Exchange, its American Depositary Shares are traded on NASDAQ, and its Global Depository Shares are listed on the Luxembourg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.

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SOURCE SK hynix Inc.

• The company to invest 35.2 trillion won in Yongin "Y2" fab and 19.1 trillion won in the Cheongju "M17" fab
• To execute mid-to-long-term investment strategy… Y2 to open cleanroom in June 2029 and M17 in December 2028
• Expand production base for both DRAM and NAND and to increase capacity aligned with customer demand
• "Strategic investment decision to seize opportunities in line with the market's growth speed and to contributing to the stability of the global AI semiconductor supply chain."

SEOUL, South Korea, Aug. 7, 2026 /PRNewswire/ -- SK hynix Inc. (or "the company", www.skhynix.com) announced today that it has decided to build new fabs in Yongin and Cheongju to respond to the continuously growing demand for memory in the AI era.

The company approved a total investment of approximately 54 trillion, 35.2 trillion won in Yongin "Y2" fab and 19.1 trillion won in the Cheongju "M17" fab, in a board meeting.

This decision represents execution of the mid-to-long-term investment strategy announced by the company last June. Under its master plan to invest 600 trillion won in the Yongin Semiconductor Cluster and 100 trillion won to expand its Cheongju production base, SK hynix is currently constructing its first fab in Yongin (Y1). With this latest decision, the company is embarking on the construction of subsequent fabs in both Yongin and Cheongju.

According to market research firm Omdia, both DRAM and NAND demand are projected to maintain a compound annual growth rate (CAGR) of 19% from last year through 2030. The company views this growth not as a temporary supercycle, but as a structural transformation in which memory transcends its role as a mere component to become core infrastructure determining AI performance itself.

SK hynix stated that in the AI era, technological competitiveness alone is not enough and the ability to supply the required volume at the exact moment customers need it is the ultimate competitive advantage. We reached this investment decision after a thorough review of market demand.

Yongin Y2 is the second of four fabs planned sequentially for the Yongin Semiconductor Cluster. It will serve as a DRAM production base spanning a total floor area of 341,000 pyeong (approximately 1,130,000m²). Construction is scheduled to break ground in July next year, targeting the opening of its first cleanroom in June 2029 to produce high-bandwidth memory (HBM) and other next-generation DRAM products. Meanwhile, construction on Y1 is progressing smoothly toward its initial cleanroom opening target of February next year.

SK hynix previously set a goal to advance the completion date of the Yongin Semiconductor Cluster by 12 years—from the originally planned 2045 to 2033—to finish constructing all four fabs. The Y2 construction serves as the second phase supporting this accelerated timeline and the investment spans to October 2031 sequentially.

The investment amount includes construction costs for "Business Support Building" with administrative and welfare facilities for Y2 personnel, an "Integrated R&D Center" to consolidate product development testing, analysis, and experiments, as well as auxiliary infrastructure^[1]..

For the Yongin Semiconductor Cluster—sprawling over approximately 1.26 million pyeong(approximately 4,160,000m²) in Wonsam-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do—Phase 1 power and water infrastructure required up through Y2 operation is nearing completion, currently at a 99% progress rate. As fab construction and infrastructure setup have been carried out concurrently, the company plans to proceed with the Y2 construction according to schedule.

In the NAND market, demand is surging rapidly centered on enterprise SSDs driven by the full-scale expansion of AI services. This is further boosted by demand for key-value (KV) cache^[2] storage in AI inference, with application fields expected to broaden further as Agentic and Physical AI are introduced.

SK hynix selected Cheongju as its new NAND fab base because it offers the fastest fab construction timeline. The Cheongju Campus already houses the M11, M12, and M15 fabs, enabling efficient production linked to existing operations on sites equipped with substantial pre-established power and water infrastructure. Cheongju M17 will be built across a total area of 206,000 pyeong(approximately 680,000m²), breaking ground in February next year with plans to open its first cleanroom in December 2028. The investment period runs through April 2031 according to the master plan.

SK hynix plans to proactively secure production infrastructure based on mid-to-long-term demand discussed with customers, while expanding actual production capacity in alignment with the timing of customer needs. Fabs will be constructed according to the master schedule, whereas cleanroom expansions and equipment installation will take place sequentially in line with demand trends to maximize capital efficiency.

The company expects this investment to secure future growth foundations while strengthening the competitiveness of the domestic semiconductor ecosystem and boosting local economies. The large-scale simultaneous investments in Yongin and Cheongju are anticipated to expand joint growth opportunities for supply chain partners, generate employment, and revitalize local commercial districts, thereby contributing to the sustainable growth of the national economy. 

An SK hynix official stated that "This investment is a decision made to seize opportunities in line with the market's growth speed. By proactively securing production capabilities, we aim to establish ourselves as a key partner in AI infrastructure, contributing to the stability of the global AI semiconductor supply chain."

About SK hynix Inc.

SK hynix Inc., headquartered in Korea, is the world's top-tier semiconductor supplier offering Dynamic Random Access Memory chips ("DRAM") and flash memory chips ("NAND flash") for a wide range of distinguished customers globally. The Company's common shares are traded on the Korea Exchange, its American Depositary Shares are traded on NASDAQ, and its Global Depository Shares are listed on the Luxembourg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.

Forward-Looking Statements

This press release may contain forward-looking statements, which involve risks and uncertainties. These statements are generally identified words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" and similar expressions, or the negative of such expressions. Forward-looking statements are not guarantees of future performance and are subject to inherent risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. SK hynix undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction. No part of this press release should form the basis of, or be relied upon in connection with, any contract, commitment, or investment decision.

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SOURCE SK hynix Inc.