SK Hynix’s transformation is gaining traction from the US, China
SK Hynix Inc., the world’s No. 2 reminiscence chip maker, has made a big enterprise shift in the US and China, which accounted for 80% of its gross sales, as buoyant demand for AI chips drives up chip costs excessive efficiency reminiscent of excessive bandwidth reminiscence (HBM) and better NAND flash.
Main AI chip provider Nvidia Corp., which controls 80% of AI chips, noticed its US gross sales practically a trillion received ($11.8 billion) within the first half of this yr, in comparison with 5.47 trillion received within the earlier yr, based on its half-yearly monetary stories revealed final week.
The US accounted for 55.4% of SK Hynix’s 28.85 trillion received gross sales recorded within the first six months of this yr, greater than double the 12.39 trillion received the earlier yr.
In China, it rakes in 8.61 trillion received in gross sales through the first half of this yr, greater than twice the earlier yr’s 3.88 trillion received. The neighboring nation accounted for 29.8% of SK Hynix’s gross sales.
Along with the common promoting value enhance for conventional and high-performance reminiscence chips, elevated demand for HBM3E, the fifth-generation HBM and solid-state drive for enterprise functions contributed to the cargo development.
Within the first half of this yr, SK Hynix’s DRAM gross sales expanded by greater than 10 trillion received on-year to 18.19 trillion received, led by next-generation reminiscence double knowledge price 5 (DDR 5) and HBM.
There was a rise from 5.6 trillion in NAND flash gross sales to 9.59 trillion received throughout the identical interval.
Within the second quarter of this yr, SK Hynix posted its highest quarterly income and highest working revenue in six years.
LPDDR DRAM chips function low energy consumption and excessive efficiency
US, CHINESE UNITS
Its US gross sales arm SK Hynix America posted a web revenue of 165.2 billion received within the first half that resulted in June from a lack of 74.1 billion received within the earlier yr. Its income virtually tripled to 12.19 trillion received, towards 4.27 trillion received over the identical interval.
In China, SK Hynix operates a chip foundry unit in Wuxi; a chip packaging manufacturing unit in Chongqing; and a NAND flash manufacturing unit in Dalian that it acquired in 2021.
Within the first half of this yr, the operation of the Wuxi manufacturing unit turned to a web revenue of 119.4 billion received from a lack of 165.6 billion received within the earlier yr.
Provided that the Wuxy manufacturing unit’s half-year gross sales remained regular at about 2.7 trillion received, its turnaround marked the rise in DRAM’s working margin.
Write to Jeong-Soo Hwang at hjs@hankyung.com
Yeonhee Kim edited this text