SK hynix forecasts improved supply chain in 2H
The South Korean chipmaker is reporting consolidated revenue for 2021 was KRW 42.998 trillion (EUR 31.82 billion), up 35% YoY from KRW 31.900 trillion (EUR 23.60 billion) the year before.
Operating profit for the year amounted to KRW 12.410 trillion (EUR 9.18 billion) and the net income to KRW 9.616 trillion (EUR 7 11 billion).
2021 proved to be a record year for SK Hynix as it surpassed the record year of 2018 where it recorded annual revenue KRW 40.445 trillion (EUR 29.92 billion).
Kevin Noh, Executive Vice President and CFO, said during an Earnings Conference Call that DRAM sales increased in PC, graphics and Chinese mobile phones, where non-face to face demand was solid. He continued to say that the company’s NAND operations NAND recorded bit shipment growth of over 60% for the year, achieving the highest ever revenue and turning around to profit for the year.
“In the mobile SSD market, by focusing on demand for high-density solution products, we drastically improved our business portfolio with more than six-fold increase in datacenter SSD sales and doubled in PC SSD in only two years,” the CFO said according to Seeking Alpha.
The consolidated revenue of fourth quarter 2021 was KRW 12.377 trillion (EUR 9.15 billion) while the operating profit amounted to KRW 4.220 trillion (EUR 3.12 billion). Net income amounted to KRW 3.320 trillion (EUR 2.45 billion).
The South Korean semiconductor company forecasts that supply chain issues will gradually improve starting in the second half of this year, and that market demand for memory products will increase.
In line with this, SK hynix decided to continue its strategy of focusing on profitability while containing market volatility by managing its DRAM inventory flexibly.
For NAND Flash, SK hynix says it will continue to pursue growth in scale. Last month the company closed of the first phase of its acquisition of Intel’s NAND and SSD business. With the acquisition soon fully realised, SK hynix expects its NAND Flash sales to double compared to last year.
Kevin Noh also stated during the Earnings conference call that SK hynix’s CapEx in 2021 was KRW 13.4 trillion. A sum that will likely increase this year, mostly due to large investments in construction and infrastructure for future growth, such as the purchase of land for a site in Yongin, South Korea and the R&D center in the U.S.