SK hynix is optimistic about the market condition
The South Korean semiconductor says that it made better results both QoQ and YoY in the first quarter as the semiconductor market conditions improved earlier this year.
The consolidated revenue of the first quarter 2021 was KRW 8.494 trillion (EUR 6.32 billion) while the operating profit amounted to 1.324 trillion (EUR 985.81 million), and the net income KRW 993 billion (EUR 739 million). Operating margin for the quarter was 16% and net margin was 12%. Although the first quarter is usually off-season of the semiconductor industry, the SK hynix says in the quarter report that the market conditions improved as demand for memory products for PCs and mobiles increased. In addition, cost competitiveness has increased as yields of major products have improved. Through this, the revenue and the operating profit increased by 7% and 37%, respectively, compared to the previous quarter. For DRAM, the company responded to market condition, and focused on mobiles, PCs, and graphics for sales. As a result, the Company’s DRAM bit shipment increased by 4% QoQ. For NAND Flash, the sales increase of high-density products for mobile devices led to NAND Flash bit shipment growth by 21% QoQ. The company says that it is optimistic about the market conditions after the first quarter. SK hynix expects the inventory of customers to decrease quickly as current stronger-than-expected demand growth in the broader IT market continues. “Demand for DRAM is likely to continue to grow, while the NAND Flash market demand is also expected to grow. SK hynix plans to respond to such market conditions proactively,” the company writes. For DRAM, SK hynix plans to supply high-capacity Multi Chip Package (MCP) based on 12GB DRAM products from the second quarter. In addition, the company has decided to increase the production volume of 1Znm DRAM. The company also announced that it will finish developing the 1Anm technology using EUV equipment within this year and begin mass production of the product as well. For NAND Flash, SK hynix says it will increase the 128-layer product mix to increase the sales of enterprise SSDs, and begin mass production of 176-layer products with the accumulated know-hows from the 128-layer technology.