The report states that the long-term supply agreement of SK Hynix does not have a price ceiling, and they are expected to fully benefit from price increases.

According to Taiwan Electronic Times, it is reported that SK Hynix recently signed long-term supply agreements with customers that differ from those of competitors, using a special contract model with no price ceiling. This strategy makes SK Hynix the only vendor in the market without a price ceiling, with the potential to maximize profits in future price increase cycles. This move breaks the traditional pricing model of semiconductor memory long-term contracts, effectively avoiding missed profits from sudden price surges due to setting a price ceiling. The key features of SK Hynix in this wave of long-term contract reforms are as follows: No price ceiling: Unlike other competitors who typically set a "price ceiling". Periodic dividends: In a hot market with supply shortages, SK Hynix can fully benefit from price increases, maximizing market value. Contract term: In response to the increase in demand for AI, SK Hynix and Samsung have extended contracts from the previous one-year term to long-term supply agreements of 3 to 5 years.