SK Hynix Shifts Production Focus to General-Purpose DRAM as HBM Dominance Secured

SK Hynix has begun scaling back its expansion of sixth-generation high-bandwidth memory (HBM4) production, redirecting capacity and resources toward general-purpose DRAM — a segment where surging demand and constrained supply have flipped the profitability equation in its favor, according to a report from Korean outlet Chosun.biz.

The shift comes as HBM revenue already accounts for more than 40% of SK Hynix’s total top line, giving the company enough breathing room to step back from the industry’s aggressive capacity race. Meanwhile, the general-purpose DRAM market has tightened to the point where operating margins now outstrip those of HBM — by an estimated 15 percentage points or more in the first quarter of this year, even though per-gigabit selling prices for commodity DRAM still lagged behind HBM.

SK Hynix has postponed plans to convert select HBM3E lines — the fifth-generation standard — to HBM4, according to sources familiar with the matter. The company wants to first shore up its general-purpose DRAM supply, seizing what it sees as a higher-margin window of opportunity. With its HBM business already on solid footing, management sees no urgency to accelerate the HBM4 transition or to rush forward with seventh-generation HBM4E, industry watchers said.

“There is no way SK Hynix management can ignore the fact that rival Samsung Electronics is already raking in far greater profits from general-purpose DRAM,” a person with knowledge of the situation told Chosun.biz. The calculus is also shaped by a downward revision in production forecasts for NVIDIA’s next-generation Rubin chip, which is designed to use HBM4 — further reducing the incentive for SK Hynix to fast-track capacity conversion.

During its first-quarter earnings presentation, SK Hynix disclosed that DRAM average selling prices had climbed roughly 65%, and signaled that high-density server modules and mobile DRAM would be the priority going forward.

The deliberate restraint on HBM4 supply could, however, open the door for Samsung to gain ground. Counterpoint Research data shows SK Hynix commanded 57% of the HBM market in the fourth quarter of last year, but that share could retreat toward the 50–60% range if Samsung successfully ramps HBM4 mass production in the second half of 2026.