Sk Hynix - HXSCL STOCK NEWS

SK hynix reported Q2 2022 revenues of 13.81 trillion won, marking a 14% increase quarter-over-quarter and a 34% increase year-over-year. The operating profit reached 4.19 trillion won with a 30% operating margin, showcasing strong profitability. This is the first time revenues exceeded 13 trillion won in a quarter. Despite falling DRAM prices, rising NAND prices and increased sales volume contributed to revenue growth. However, demand for memory is expected to slow in the second half due to reduced shipments of PCs and smartphones.

SK hynix has commenced mass production of HBM3, the leading edge DRAM, just seven months after its initial development announcement. This advanced memory will be paired with NVIDIA's H100 Tensor Core GPU to enhance accelerated computing performance. HBM3 is expected to significantly increase data processing speeds, catering to the rising demand from global tech firms focusing on artificial intelligence and big data. The anticipated launch of NVIDIA systems utilizing HBM3 is set for the third quarter of 2022, solidifying SK hynix's leadership in the premium DRAM market.

SK hynix generated 9.4173 trillion won in social value in 2021, marking a 93% increase from 2020. This contribution represented over half of the 18.4 trillion won generated by SK Group. The company's indirect economic contributions totaled 9.7201 trillion won, while environmental performance reported a negative 952.7 billion won. Tax payments soared 160% to 2.3633 trillion won, and employment growth increased by 56%. Despite these gains, greenhouse gas emissions rose, negatively impacting environmental performance by 15 billion won.

SK hynix reported strong financial results for Q1 2022, with revenues reaching 12.16 trillion won and operating profit at 2.86 trillion won, achieving an operating margin of 24%. Net income was 1.98 trillion won, reflecting a 40% decline year-over-year. The company attributes its performance to a smaller-than-expected decline in memory chip prices and contributions from its subsidiary Solidigm. However, it also set aside a 380 billion won provision for compensation due to weaknesses in some DRAM products. Despite challenges, SK hynix remains optimistic about growth in the memory industry.

SK hynix and Solidigm have announced their first collaborative product, the P5530 enterprise solid-state drive (eSSD), combining SK hynix's 128-layer NAND Flash with Solidigm's SSD controller. This partnership aims to enhance competitiveness in the NAND flash sector while investing in US R&D under SK hynix's 'Inside America Strategy.' The P5530 is designed for data centers, available in 1TB, 2TB, and 4TB capacities, showcasing the potential of this new partnership just three months post-acquisition of Intel’s NAND business by SK hynix.

On February 16, 2022, SK hynix announced the development of PIM (Processing In Memory), marking a significant advancement in memory chip technology. This next-generation chip offers computational capabilities designed to alleviate data congestion for AI and big data applications. The GDDR6-AiM, the first product using PIM, boasts processing speeds 16 times faster than traditional DRAM. Operating at a reduced voltage of 1.25V, it also lowers power consumption by 80%, aligning with SK hynix's ESG goals. The technology will be showcased at ISSCC 2022 in San Francisco.

SK hynix reported record-high revenues for fiscal year 2021, achieving 42.998 trillion won, a 35% increase year-over-year. The operating profit was 12.410 trillion won, a 148% rise, while net income soared to 9.616 trillion won, reflecting a 102% growth. The operating margin stood at 29%.

For Q4 2021, revenues reached 12.377 trillion won, with operating profit at 4.220 trillion won. SK hynix plans to raise dividends and expects to double its NAND Flash sales through its US subsidiary.

SK hynix has successfully acquired Intel's SSD business and the Dalian NAND Flash Manufacturing Facility in China for $7 billion, following clearance from China's regulatory body. The new entity will operate under the name Solidigm, headquartered in San Jose, California, with plans for a second phase acquisition valued at $2 billion to finalize the deal by March 2025. This acquisition aims to enhance SK hynix's competitive edge in NAND Flash alongside its leading DRAM business.

SK hynix announced the shipment of samples for its 24Gb DDR5 DRAM, the highest density in the industry, just 14 months after launching the first DDR5 DRAM. Utilizing 1anm technology with EUV process, it achieves up to 33% speed improvement and 25% lower power consumption. The initial offerings will be 48GB and 96GB modules targeting cloud data centers and high-performance servers for AI and big data processing. The launch aligns with SK hynix's ESG goals, focusing on reduced carbon emissions and energy efficiency.