SK Hynix Emphasizes Memory Supply Stability in the US: "No Production Delays or Bottlenecks"

Details of Semiconductor-Related Data Submitted to the US Department of Commerce on the 8th
Focus on Explaining the Status of 'Juryuk' Memory

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] SK Hynix has confirmed that it emphasized to the U.S. Department of Commerce that the supply and demand of its main products, DRAM and NAND flash memory semiconductors, are stable, and that there are no production delays or bottlenecks. In the semiconductor supply chain data submitted to the U.S. government, SK Hynix did not include customer information and responded with some data such as inventory levels only within the scope of already publicly disclosed information, apparently to highlight that its main products are not at the center of the current semiconductor supply chain issues.

According to the materials submitted by SK Hynix, which were made public on the U.S. federal government website on the 10th, SK Hynix responded to the current supply chain situation and the U.S. government’s survey through a document dated the 8th (local time) under the name of Dan Kim, Vice President and Chief Economist of SK Hynix’s U.S. subsidiary. In its public response, SK Hynix mainly used information from already published market research firms to explain the situation.

Throughout the survey response, SK Hynix explained that there are no issues with product supply. Especially given the large proportion of the memory semiconductor business, it focused on explaining the situation in the memory industry. SK Hynix stated, "The memory industry is relatively easier to respond to short-term supply and demand changes compared to other semiconductor sectors," and emphasized, "Currently, memory products are not the cause of the semiconductor shortage." It added, "Due to the marketability of memory, diversity of suppliers, and market-driven price changes, memory supply and demand have remained stable over the past several years," and "In particular, SK Hynix has not experienced any supply issues that would cause disruptions to customers."

Data on the average DRAM transaction price cited by SK Hynix while explaining the DRAM market. (Source: Data submitted by SK Hynix on the U.S. federal government website)

SK Hynix reiterated that there are no supply issues in response to individual questions as well. Regarding order delays, it emphasized that "there have been no order delays for any products over the past three years," and that the supply of major memory products such as DRAM and NAND is sufficient. When asked about lead times related to bottlenecks (the time from order to delivery), it answered, "Currently, we are not experiencing any production delays or bottlenecks," and regarding inventory levels, it stated, "There is no significant change compared to before." It added, "We continuously monitor potential supply bottlenecks," and "This year, we resolved potential supply issues through proactive discussions with customers."

However, SK Hynix mentioned that, to assist the U.S. Department of Commerce in understanding the supply chain, although there are currently no supply issues with major products, it submitted comprehensive supply chain information at an industry level without naming customers in confidential documents. This was done through active consultation with the Department of Commerce, providing data by industry such as PC and server sectors without exposing customer information.

Furthermore, SK Hynix emphasized its important role in the U.S. semiconductor ecosystem. SK Hynix stated, "We work closely with U.S. customers to ensure stable supply of memory semiconductors. We also directly participate in and support the U.S. semiconductor research ecosystem," and mentioned, "Supplying stable memory products to U.S. customers is a paramount factor for SK Hynix’s success."

Earlier, on September 24, the U.S. Department of Commerce announced that it would conduct a survey to understand the supply chain, requesting data from semiconductor companies such as Samsung Electronics and SK Hynix, as well as some companies using semiconductors like automakers. According to the U.S. federal government website, 189 documents were submitted by the survey deadline on the 8th, and among them, 79 companies’ information has been officially posted on the site after review by the Department of Commerce.

Domestic semiconductor companies such as Samsung Electronics, SK Hynix, and DB Hitek submitted their documents by the deadline on the 8th, but the materials from Samsung Electronics and DB Hitek have not yet been separately disclosed. All these companies stated that they submitted the data excluding customer information. Other domestic companies that submitted data include Hyundai Motor and Kia Motors’ U.S. subsidiaries and SK Siltron.

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