© SK Hynix
Business | April 28, 2021
The South Korean semiconductor said it performed better in QoQ and YoY in the first quarter, as semiconductor market conditions improved earlier this year.
Consolidated turnover for the first quarter of 2021 was KRW 8,494 billion (€ 6.32 billion), while operating profit amounted to € 1,324 billion (985, 81 million euros) and net profit to 993 billion KRW (739 million euros). The operating margin for the quarter was 16% and the net margin was 12%. Although the first quarter is generally off season for the semiconductor industry, SK hynix says in the quarterly report that market conditions have improved as demand for PC and mobile memory products has increased. In addition, cost competitiveness has increased as the yields of major products have improved. As a result, sales and operating profit increased by 7% and 37% respectively compared to the previous quarter. For DRAM, the company responded to market conditions and focused on mobile, PC, and graphics for sales. As a result, the Company’s DRAM bit deliveries increased by 4% QoQ. For NAND Flash, increased sales of high density mobile device products led to NAND Flash bit shipments growth of 21% QoQ. The company is optimistic about market conditions after the first quarter. SK hynix expects the customer stock to decline rapidly as the current stronger than expected demand growth in the broader IT market continues. “The demand for DRAM is expected to continue to grow, while the market demand for NAND flash memory is also expected to increase. SK hynix plans to react proactively to these market conditions, ”the company writes. For DRAM, SK hynix plans to deliver a high capacity multi-chip package (MCP) based on 12 GB 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 complete the development of 1Anm technology using EUV equipment during this year and also begin mass production of the product. For NAND Flash, SK hynix announces that it will expand the product line to 128 layers to increase sales of enterprise SSDs and start mass production of 176-layer products with the accumulated know-how of 128-layer technology .