News
SK Hynix Targets Mid-30% CapEx-to-Revenue Ratio on 3-Year Moving Average
Thursday, November 27, 2025 at 11:36 PM
SK Hynix has reportedly set a long-term financial target, aiming for its capital expenditure to maintain a mid-30% ratio relative to its revenue on a 3-year moving average. This metric is useful for investors to gauge the company's strategy for production capacity investment and financial planning.
Context
SK Hynix has established a new capital expenditure policy, planning to maintain CapEx at around the mid-30% level of its sales. This target, calculated on a three-year moving average, is part of its financial framework for the 2025-2027 period. The policy provides investors with a clear and predictable view of future spending, aiming to balance aggressive growth investments with financial discipline.
This sustained investment is a direct response to surging AI-driven demand for advanced memory, particularly High-Bandwidth Memory (HBM). With its HBM products already nearly sold out for 2026, SK Hynix is boosting spending to expand capacity and secure its market leadership. The spending will fund crucial expansions for next-generation HBM4 memory, ensuring the company can meet demand from key customers while smoothing out year-to-year spending volatility amid record earnings.
Sources (13)
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