SK Hynix announced this week that it will grant a 150% productivity incentive (PI) bonus—equivalent to 1.5 times base monthly salary—to all employees for the first half of 2025. The move comes on the heels of record-breaking earnings, driven by surging demand for AI memory products and the company's continued leadership in high-bandwidth memory (HBM).

Under SK Hynix's performance-based bonus system, PI payout rates are determined by operating profit margins. With a Q1 margin of 42%, the company qualified for the highest tier of 150%. The bonus will be distributed on July 28.

Financial results for the second quarter, ending June 30, underscore the company's momentum. Revenue jumped 35% year-on-year to KRW 22.23 trillion ($16 billion), beating analyst forecasts and setting a new record. Operating profit surged 69% to KRW 9.21 trillion, while net income rose 70% to KRW 6.99 trillion. Operating and net profit margins hit 41% and 31%, respectively.

SK Hynix attributed its strong performance to accelerated AI investments by global tech giants, which drove up demand for advanced memory. Both DRAM and NAND Flash shipments exceeded expectations, with DRAM sales boosted by the expanded supply of 12-layer HBM3E products. NAND Flash also saw rising demand across multiple applications.

As a result of the stellar quarter, SK Hynix's cash holdings rose to KRW 17 trillion, up KRW 2.7 trillion from Q1. Net debt dropped significantly by KRW 4.1 trillion, bringing the net debt ratio to just 6%. Stable inventory levels were maintained even as customers ramped up orders and production.

Looking ahead, SK Hynix plans to double its HBM production in 2025 compared to 2024, capitalizing on its existing capacity and performance in HBM3E. The company is also preparing for timely supply of HBM4 based on customer demand, aiming to maintain its technological edge in AI memory.

In addition, SK Hynix intends to begin supplying LPDDR-based server modules in 2025 and is working to expand its 16Gb GDDR7 product—currently supplied to AI GPU customers—to 24Gb. With a broader portfolio of AI-optimized memory products, the company expects to further solidify its leadership in the AI market.

In the NAND segment, SK Hynix will continue its profit-focused strategy with cautious investments. It aims to expand sales of QLC-based high-capacity enterprise SSDs and build a product lineup based on 321-layer NAND, enhancing its market competitiveness.

To meet future demand for next-generation memory, SK Hynix also announced partial investment in 2025 for capacity expansion targeting 2026 HBM needs. “We aim to become a full-stack AI memory provider capable of delivering the highest quality and performance products that lead the industry while meeting ecosystem demands,” said Hyeon-jong Song, Head of the Corporate Center.