SK Hynix Q1 Operating Profit Up 65%... "Strong Demand for PC and Mobile Memory Semiconductors"

[Asia Economy Reporter Su-yeon Woo] SK Hynix announced on the 28th that it recorded business results for the first quarter of this year with sales of 8.4942 trillion KRW, operating profit of 1.3244 trillion KRW, and net profit of 992.6 billion KRW. These figures represent increases of 18%, 65%, and 53% respectively compared to the same period last year.

It is analyzed that the semiconductor market conditions improved at the beginning of this year, resulting in better performance compared to the previous quarter and the same period last year. Although the first quarter is usually a seasonal off-season, the company stated that demand for memory products applied to PCs and mobiles increased, acting as a positive factor for performance. Additionally, yield rates of key products improved rapidly, enhancing cost competitiveness.

First, DRAM sales increased mainly in mobile, PC, and graphics products, with product shipments rising 4% compared to the previous quarter. NAND flash shipments increased by 21% quarter-on-quarter due to increased sales of high-capacity products used in mobile devices.

[Image source=Yonhap News]

SK Hynix also provided a positive outlook for the market after the first quarter. It expects DRAM demand to continue growing and NAND flash market conditions to improve. SK Hynix plans to enhance its performance by responding to these market environments.

Specifically, the company announced that from the second quarter, it will supply high-capacity MCPs (semiconductors combining multiple types of chips into a single product) based on 12GB. It also plans to increase production of its main DRAM product, the 10nm-class 3rd generation (1z) product. Furthermore, it added that it will start mass production of the 4th generation (1a) product using EUV within this year. For NAND flash, the company plans to increase the sales proportion of 128-layer products and begin mass production of 176-layer products within the year.

Along with this, SK Hynix expressed strong commitment to ESG management. No Jong-won, Vice President and Chief Financial Officer (CFO) in charge of management support, said, "Last year, we strengthened a board-centered responsible management system and participated in the Semiconductor and Display Carbon Neutrality Committee, continuing ESG management activities. Going forward, we will actively develop eco-friendly technologies and raise our RE100 level to ensure that the semiconductor industry becomes a model case for ESG."

This content was produced with the assistance of AI translation services.