Sk Hynix - HXSCL STOCK NEWS

SK hynix reported FY2022 revenues of 44.648 trillion won and an operating profit of 7.007 trillion won, with a net income of 2.439 trillion won. Despite a 4% revenue increase year-over-year, the company faced its first quarterly operating loss in a decade during Q4 due to low demand and falling memory chip prices. The operating loss for Q4 2022 was 1.701 trillion won, marking a 30% decrease from the previous quarter. Management anticipates a market recovery in the latter part of 2023, driven by demand for new AI technologies and strategic investments in high-capacity DRAM.

SK hynix has unveiled its latest product, the LPDDR5T, touted as the world's fastest mobile DRAM, achieving a data rate of 9.6 Gbps, a 13% increase over its predecessor, LPDDR5X. This new DRAM operates at an ultra-low voltage range of 1.01 to 1.12V, enhancing energy efficiency while boosting performance. Sample products have been sent to customers, and mass production is set for the second half of 2023. The integration of the HKMG process further improves speed and reduces power consumption. The company anticipates expanding the LPDDR5T's application in sectors including AI and AR/VR.

On January 11, 2023, SK hynix announced the industry's first validation of its 1anm DDR5 server memory on the 4th Gen Intel® Xeon® Scalable processor. This milestone, occurring shortly after the processor's launch on January 10, 2023, signifies a pivotal development in server technology. The 1anm DDR5 offers a 20% reduction in power consumption and over 70% better performance compared to DDR4. SK hynix aims to leverage this validation to strengthen its market leadership and cater to the expected surge in demand for high-performance memory chips.

On January 4th, 2023, SK hynix Vice Chairman Park Jung-ho met with Qualcomm CEO Cristiano Amon at CES 2023 in Las Vegas. The meeting focused on enhancing collaboration in the semiconductor industry as Qualcomm expands into automotive and IoT markets. The executives discussed future industry trends and emphasized the importance of cooperation beyond borders and industries. SK hynix aims to explore various business opportunities through partnerships with global tech companies.

SK hynix announced it will showcase new memory products at CES 2023 under the theme of "Green Digital Solution", contributing to its leadership in the solid-state drive market. Key offerings include the PS1010 E3.S eSSD featuring advanced 176-layer 4D NAND technology, promising a 130% increase in read speed and a 49% increase in write speed compared to its predecessor. The improvements also ensure a 75% boost in performance-per-watt, decreasing operational costs and carbon emissions. Additional products include HBM3 and GDDR6-AiM, showcasing the company's commitment to energy efficiency.

SK hynix has unveiled the DDR5 Multiplexer Combined Ranks (MCR) DIMM, the world’s fastest server DRAM module, achieving a data transfer rate of over 8Gbps. This new technology is designed to improve operational speed by allowing simultaneous operation of two ranks, increasing data transmission to the CPU. Collaborating closely with Intel and Renesas, SK hynix aims to solidify its leadership in the server DRAM market. The product will enter mass production in the future, supported by an expanding market for high-performance computing.

SK hynix reported Q3 2022 revenues of 10.98 trillion won, with an operating profit of 1.66 trillion won and net income of 1.1 trillion won. Sales and profits fell 20.5% and 60.5% QoQ due to decreased demand and pricing for memory chips. The company plans to cut investment by over 50% YoY in 2023 while shifting focus to more profitable products, especially server DRAMs. Despite short-term demand decreases, long-term growth is anticipated in data center markets as SK hynix capitalizes on leading DRAM technologies.

SK hynix has announced plans to construct the M15X fabrication plant in Cheongju, South Korea, commencing construction in October 2022 and set for completion in early 2025. The company will invest 15 trillion won over five years to enhance its memory chip production capabilities. This initiative aims to solidify SK hynix's market position amidst current economic challenges, as the demand for memory chips is projected to recover by 2025. The M15X will be SK hynix's first new fab since celebrating its 10th anniversary.