SK Hynix Inc. is reportedly negotiating a long-term dynamic random access memory (DRAM) supply agreement with Alibaba and Tencent that could run through 2035. The report comes just ahead of the company’s third-quarter earnings announcement, and its American depositary receipts gained in premarket trading.
A long-term deal would give SK Hynix greater revenue visibility in the cyclical semiconductor market. It would also secure memory-chip supplies for Alibaba and Tencent as demand grows for cloud computing and AI applications.
SK Hynix shares also surged in Seoul trading, partly after a report that the company is considering a special dividend of approximately $12 billion.