Latest news with #SKhynix
Time of India
6 hours ago
- Business
- Time of India
SK hynix posts record profits on surging AI demand
Academy Empower your mind, elevate your skills South Korean chip giant SK hynix reported record quarterly profits Thursday thanks to soaring demand for artificial world's second-largest memory chip maker dominates the market for high-bandwidth memory (HBM) semiconductors and is a key supplier for US titan firm said operating profit climbed almost 70% to 9.2 trillion won ($6.7 billion) in the second quarter, with revenues coming in at 22.2 trillion won -- both all-time comes after Taiwan chip giant TSMC last week announced a surge in net profit for the second quarter, topping forecasts, thanks to robust demand for AI technology, despite the threat of US tariffs on the critical hynix also said net profit was up close to 70% on-year, at nearly seven trillion won."Aggressive investment by global big tech companies into AI led to a steady increase in demand for AI memory," it said in a of DRAM and NAND flash -- other types of computer memory -- topped forecasts, boosting the bottom line."SK hynix foresees that increasing competition among big tech companies to enhance inference of AI models would lead to higher demand for high-performance and high-capacity memory products," the company in the firm rose more than three percent in Seoul but pared gains to close up 0.2%."Nvidia suppliers like SK hynix will continue to enjoy strong demand in the coming months and years for memory chips due to the high memory content needed to make AI chips functional," G Dan Hutcheson of TechInsights told competition from rivals is its main risk factor, along with "saturation of the market as AI algorithms become more efficient as well as the uncertain impact of tariffs, the global trade war, and the resultant potential for a global recession", he Korea is a major exporter to the United States and its powerhouse semiconductor and auto industries would suffer greatly under President Donald Trump 's threatened 25% attribute SK hynix's resilience to its growth in the DRAM firm took the lead in DRAM revenues in April, with a 36% market share, according to research firm Counterpoint. That surpassed South Korean rival Samsung for the first time -- the first change in the top spot in more than four hynix said in a conference call that "the previous quarter began amid concerns over slowing demand due to trade tensions and broader economic uncertainty".But as the United States has been threatening restrictions on semiconductor sales to China, customers' preemptive purchases "to hedge against external risks" created a "more favourable environment" than expected, an SK hynix official company added that despite the geopolitical situations, its production situation saw "no change".
Korea Herald
10 hours ago
- Business
- Korea Herald
SK hynix posts record quarterly profit on AI chip boom
Chipmaker eyes double HBM sales this year, with next-gen chips ready for Nvidia SK hynix, the world's top memory chip-maker by revenue, hit an all-time high quarterly operating profit of 9.2 trillion won ($6.73 billion) in the April-June period, thanks to soaring demand for its high bandwidth memory chips, a core component in AI processing. Reporting the second quarter's earnings, the company said it aims to double HBM sales and shipments this year compared to 2024, as well as increase its capital expenditure beyond its initial plans for rising HBM demand starting in 2026. The chipmaker reported that it has recorded 22.2 trillion won in sales in the second quarter, up 35.4 percent on-year. The operating profit also surged 68.5 percent over the same period, and net profit came in at 6.99 trillion won. Backed by strong earnings, SK hynix' cash holdings rose by 2.7 trillion won on-quarter to 17 trillion won. Its debt ratio stood at 25 percent, with net debt ratio at 6 percent, down 4.1 trillion won from the previous quarter. "We are on track to meet our goal as a full stack AI memory provider, satisfying customers and leading market expansion through the timely launch of products with best-in-class quality and performance required by the AI ecosystem," Song Hyun-jong, president and head of Corporate Center at SK hynix, said. "We will carry out part of the planned investments preemptively this year for a smooth delivery of major products with visible demand for next year, including HBM." The strong performance was driven by the full-scale ramp up of 12-layer HBM3E sales and increased NAND flash shipments across all applications. The company also attributed its recent success to an aggressive investment by global big tech companies into AI. "There are concerns about a potential demand slowdown in the second half (of the year), but major market fluctuations seem unlikely. We plan to focus operations on products with clear demand visibility," Kim Kyu-hyun, head of DRAM Marketing, said. While HBM4 involves significant technical upgrades — including expanded (input/output) for higher bandwidth, design changes for lower power consumption and the application of logic processes to the base die — SK hynix said it is factoring in the increased production costs as much as possible into its pricing strategy. "We aim to establish optimal pricing in collaboration with customers, while maintaining a healthy level of profitability," said Kim Ki-tae, SK hynix vice president and head of HBM sales and marketing. Regarding the latest US export controls possibly weakening the role of its Chinese manufacturing facilities, SK hynix emphasized that its China fabs will remain a core part of its global memory production strategy. "Shortage in legacy products, such as DDR4 and LPDDR4, are emerging across the industry, and we see our China fab playing a key role in meeting that demand," Song said. He also forecast that long-term demand for the legacy products would remain steady, particularly from Chinese smartphone makers. Capacity for older-generation DRAM chips has tightened in the past months as global production shifts toward HBM chips and newer DRAM standards like DDR5 and LPDDR5. Over Nvidia's plan to supply the H20 chips to China, SK hynix said it is ready to respond quickly if customer demand and supply conditions align. The company currently supplies 8-layer HBM3 — the previous-generation product — for the H20. SK hynix also plans to launch its 24Gb GDDR7 in the second half of the year, which is reportedly intended for Nvidia's upcoming RTX Pro AI accelerator targeting the Chinese market. Additionally, the company is focusing on strengthening its core DRAM technology, which underpins HBM. The company said it is developing next-generation technologies such as 3D DRAM and vertical gate architectures, and plans to begin transitioning to its sixth-generation 10-nanometer-class process in the second half of this year, with full-scale adoption scheduled for next year. In the NAND business, the company said it will take a cautious investment approach, prioritizing profitability and market demand, while continuing product development in anticipation of future market recovery. The company plans to expand sales of QLC-based high-capacity eSSDs and strengthen its product portfolio built on 321-layer NAND. Regarding its M15X fab in Cheongju, SK hynix said it plans to begin operations in the fourth quarter of this year, with mass production of next-generation HBM scheduled to start next year.
Mint
11 hours ago
- Business
- Mint
SK hynix posts record profits on surging AI demand
South Korean chip giant SK hynix reported record quarterly profits Thursday thanks to soaring demand for artificial intelligence. The world's second-largest memory chip maker dominates the market for high-bandwidth memory (HBM) semiconductors and is a key supplier for US titan Nvidia. The firm said operating profit climbed almost 70 percent to 9.21 trillion won ($6.72 billion) in the second quarter, with revenues coming in at 22.23 trillion won -- both all-time peaks. The news comes after Taiwan chip giant TSMC last week announced a surge in net profit for the second quarter, topping forecasts, thanks to robust demand for AI technology, despite the threat of US tariffs on the critical sector. HK hynix also said net profit was up close to 70 percent on-year, at 6.99 trillion won. "An aggressive investment by global big tech companies into AI led to a steady increase in demand for AI memory," it said in a statement. Shipments of DRAM and NAND flash topped forecasts, boosting the bottom line. "SK hynix foresees that increasing competition among big tech companies to enhance inference of AI models would lead to higher demand for high-performance and high-capacity memory products," the company added. Shares in the firm rose more than three percent in Seoul. South Korea is a major exporter to the United States and its powerhouse semiconductor and auto industries would suffer greatly under President Donald Trump's threatened 25 percent tariffs. Experts attribute SK hynix's resilience to its growth in the DRAM market. The firm took the lead in DRAM revenues in April, with a 36 percent market share, according to specialist research firm Counterpoint. That surpassed South Korean rival Samsung for the first time and marked the first change in the top spot in more than four decades. The company also recorded a combined $15.5 billion in sales of DRAM and NAND in the second quarter, matching Samsung to jointly lead the global memory market, according to a Counterpoint report. SK hynix said in a conference call that "the previous quarter began amid concerns over slowing demand due to trade tensions and broader economic uncertainty". But "strong AI-related investment by major tech firms continued to drive growth in demand for AI-oriented memory products". As the United States has been threatening certain restrictions on semiconductor sales to China, customers' preemptive purchases "to hedge against external risks", actually created a "more favourable environment than initially expected", an SK hynix official said.
Korea Herald
15 hours ago
- Business
- Korea Herald
Seoul shares open higher on record Q2 earnings from SK hynix
Seoul shares kicked off sharply higher Thursday on the strong performance of big-cap tech shares, in particular SK hynix, boosted by record-high second-quarter earnings. The benchmark Korea Composite Stock Price Index gained 38.8 points, or 1.22 percent, to 3,222.57 in the first 15 minutes of trading. Overnight, Wall Street gained ground as the Donald Trump administration struck a trade deal with Japan to lower its 25 percent reciprocal tariffs on the Asian nation to 15 percent in exchange for greater access to Japanese automobile and agricultural markets as well as massive investments in the United States. The Dow Jones Industrial Average rose 1.14 percent, the S&P 500 added 0.78 percent, and the tech heavy Nasdaq composite went up 0.61 percent. In Seoul, chipmaking giant SK hynix soared 3.07 percent, while its rival Samsung Electronics edged up 0.15 percent. Shortly before the market opening, SK hynix reported an operating profit of 9.21 trillion won ($6.7 billion) and a revenue of 22.23 trillion won for the April-June period, which both exceeded the previous all-time highs set in the fourth quarter of last year thanks to soaring global demand for artificial intelligence chips. Leading battery maker LG Energy Solution surged 4.31 percent, and pharmaceutical giant Samsung Biologics jumped 3.85 percent. Major power equipment builder Doosan Enerbility also shot up 5.21 percent, and shipbuilding heavyweight Hanwha Ocean escalated 3.71 percent. Financial shares also kicked off bullish, with KB Financial up 1.82 percent and Shinhan Financial climbing 2.35 percent. The local currency was trading at 1,374.8 won against the US dollar at 9:15 a.m., up 5.0 won from the previous session. (Yonhap)
Korea Herald
16 hours ago
- Business
- Korea Herald
SK hynix Q2 operating profit tops W9tr for 1st time on AI chip boom
South Korean chipmaking giant SK hynix Inc. said Thursday its second-quarter operating profit surpassed 9 trillion won ($6.53 billion) for the first time, driven by booming demand for artificial intelligence chips, including high bandwidth memory. In a regulatory filing, the company reported an operating profit of a record 9.21 trillion won for the April-June period, up 68.5 percent from a year ago, setting a new quarterly record. Revenue jumped 35.4 percent on-year to 22.23 trillion won, while net income soared 69.8 percent to 6.99 trillion won. Both operating profit and sales exceeded the previous all-time highs set in the fourth quarter of last year. SK hynix attributed the record-breaking performance to robust AI-related demand, solidifying its status as a world leader in HBM technology. "Aggressive investments by global big tech companies in AI led to a steady increase in demand for AI memory," the company said in a statement. "Shipments of both DRAM and NAND flash were higher than expected, helping the company log the best quarterly results in its history." It said sales of its 12-layer HBM3E products and NAND flash memory expanded in the second quarter, contributing to a positive earnings trend, led by its "industry-leading competitiveness in AI memory and profitability-first management discipline." SK hynix noted that the inventory level remained stable in the three-month period ending in June on increased memory orders and shipments of finished products. In the second half, demand for memory is expected to continue growing as major customers have plans to launch new products. The company also forecast stronger demand for high-performance and high-capacity memory chips amid intensifying global competition to enhance AI model inference capabilities. Ongoing investments by nations to build sovereign AI infrastructure are also expected to generate long-term memory demand, it added. To meet the growing need, SK hynix said it plans to double its HBM output this year, leveraging its production capabilities and outstanding performance of its products. It also said it will be ready to provide HBM4, the sixth-generation HBM, based on customer timelines to stay competitive in the AI memory race. In addition, SK hynix said some of this year's planned investments will be frontloaded to facilitate a smoother supply of key products, including HBM, in 2026. "We are on track to meet our goal as a 'full stack AI memory provider,' satisfying customers and leading the market expansion through the timely launch of products with best-in-class quality and performance required by the AI ecosystem," said Song Hyun-jong, president and head of the Corporate Center at SK hynix. (Yonhap)
