SK Hynix's 2028 High-NA-EUV Target Takes Shape as Investors Press for Bigger Payouts

SK Hynix eyes a 2028 High-NA-EUV photomask consortium stake, faces a KRW 5 trillion KEPCO prepayment proposal, and earns a BofA upgrade to Buy.

SK Hynix is juggling a trio of storylines that rarely appear in the same sentence: a push into next-generation chipmaking equipment, a shareholder base that wants a larger slice of record profits, and a state utility asking for billions up front. Each one carries its own clock, and none of them is fully settled.

A 2028 Deadline for the Next Manufacturing Node

The company confirmed it is weighing a stake in a consortium formed to bring 12-inch photomasks into production, with 2028 penciled in as the target for deploying High-NA-EUV technology in mass DRAM manufacturing. That equipment sits at the heart of efforts to print smaller circuit features economically — a question that matters far more to SK Hynix's long-run competitive standing than any single day's trading.

Payout Plans Become a Referendum on Korean Reform

Reuters reported that the distribution plans of SK Hynix and Samsung Electronics have turned into a litmus test for South Korea's corporate governance overhaul. Investors welcome the payments in principle, yet they are pressing for deeper changes to how the companies deploy capital. The message is blunt: announcing a payout is no longer enough to satisfy the market. With memory-chip earnings at record levels, the gap between what the conglomerates earn and what actually reaches shareholders has become the flashpoint. For SK Hynix, the criticism lands awkwardly, since the company is simultaneously committing large sums to capacity expansion while negotiating with government bodies over power supply and site incentives.

Bank of America Turns Bullish

The operating backdrop, by contrast, looks robust. South Korean exports hit a record this year, and SK Hynix has been a prime beneficiary of surging memory prices tied to the artificial intelligence investment wave. That dynamic prompted Bank of America to upgrade the stock to "Buy" on Wednesday, setting a price target of USD 250 and pointing to accelerating demand for AI-driven memory chips.

KEPCO's Advance Payment Proposal Still in Limbo

Not everything on the agenda is a tailwind. State utility Korea Electric Power Corp proposed in early September that SK Hynix pay roughly KRW 5 trillion in advance for electricity through 2031. KEPCO made clear that participation, tariff terms, the final sum and the payment schedule all remain unresolved, leaving the proposal provisional — though it could still shape the chipmaker's medium-term cost base. The context: Reuters reported that South Korea's power demand is set to climb sharply as Samsung and SK Hynix expand production and new AI data centers come online under an KRW 800 trillion government program.

Washington Talks and a Kioxia Rejection

Geopolitics adds another layer. In the ongoing bilateral tariff negotiations between Seoul and Washington, SK Hynix is named among the country's leading semiconductor firms, though no company-specific commitment has been finalized. Meanwhile, speculation about a deeper manufacturing tie-up with Kioxia was shut down by the Japanese company's chief executive, Hiroo Ota, who said on Wednesday that no closer collaboration with SK Hynix is being pursued. A representative of SK Hynix confirmed that no such talks are taking place.

Where the Shares Stand

The stock closed Friday at KRW 1,812,000, down 2.2 percent on the day. Even so, it has gained 20 percent over the past 30 days and 179 percent since the start of the year. The shares now sit 39 percent below their 52-week high of KRW 2,987,000 reached in June — a sign that the stock is consolidating after a powerful run, with capacity spending, energy costs and capital returns likely to steer the next leg.