SK HYNIX INC S/GDR 144A - HXSCL STOCK NEWS

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.

SK hynix has developed High Bandwidth Memory 3 (HBM3), the fastest DRAM globally, marking a significant milestone in memory technology. HBM3 processes up to 819GB/s, a 78% increase from its predecessor, HBM2E, enabling rapid data transmission. The product boasts a capacity of 24GB, the largest in the industry, and integrates advanced error-correction technology for enhanced reliability. HBM3 is expected to drive performance in high-performance data centers and AI platforms. This achievement solidifies SK hynix's leadership in the premium memory market.

SK hynix has commenced mass production of its 8 Gb LPDDR4 mobile DRAM utilizing 1anm technology, based on advanced 10nm processes. This marks the company's first full-scale adoption of EUV equipment, enhancing productivity by 25% compared to 1znm nodes. The new DRAM operates at a record speed of 4266Mbps while reducing power consumption by 20%, aligning with SK hynix's ESG commitments. The technology will also be applied to DDR5 products starting from early 2022, solidifying SK hynix's leadership in the semiconductor sector.

SK hynix Inc. has commenced mass production of the industry's first 18GB LPDDR5 mobile DRAM, enhancing mobile performance and data handling. This new chip operates at a speed of 6,400Mbps, surpassing its predecessor by 20%. Initially featured in the ASUS 'Republic of Gamers (ROG) 5' smartphone, SK hynix anticipates a growing demand for LPDDR5 DRAM, currently at 10% market share and projected to exceed 50% by 2023. This product is expected to support advanced applications in smartphones, including high-resolution gaming and AI technologies.

SK hynix has completed the construction of its new fabrication plant, M16, in Icheon, South Korea, after a 25-month construction period. The company invested KRW 3.5 trillion and utilized 3.34 million workers for this project. The M16 plant, which is the largest among SK hynix's facilities, will mainly produce DRAM products and will utilize cutting-edge EUV lithography equipment to manufacture 1a nm DRAM products starting the second half of 2021. This completion aligns with SK hynix's "Future Vision" to enhance its position in the semiconductor industry.

SK hynix has launched the world's first DDR5 DRAM, optimized for Big Data and AI. The DDR5 supports a transfer rate of 4,800 to 5,600 Mbps, making it 1.8 times faster than DDR4, while reducing power consumption by 20% to 1.1V. It features Error Correcting Code (ECC) technology to enhance reliability by 20 times and supports up to 256 GB capacity using TSV technology. SK hynix anticipates DDR5 to capture 43% of the global DRAM market by 2024, driven by its collaboration with partners like Intel and Synopsys.