SEOUL, South Korea: South Korea’s memory chipmaker, SK hynix, posted record earnings in the second quarter due to sustained demand growth from expanding artificial intelligence (AI) infrastructure investments, the company said today, reported Xinhua.
The company’s operating profit soared 557.2 per cent over the year to 60.54 trillion won (USD41.6 billion) in the April-June quarter, with an operating margin of 76 per cent.
Its revenue jumped 256.8 per cent to 79.32 trillion won (USD54.5 billion), while net income surged 1,242.5 per cent to 93.92 trillion won (USD64.5 billion).
The earnings marked an all-time-high quarterly performance in its history, the company stressed.
Both DRAM and NAND flash memory prices significantly increased quarter-over-quarter, leading SK hynix to achieve top-tier profitability by expanding sales centered on high-value-added products such as HBM, DRAM for AI servers, and eSSD.
The chipmaker’s cash and cash equivalents reached 88 trillion won (USD60.5 billion) at the end of June, a growth of 33.6 trillion won (USD23.1 billion) from three months earlier.
Its total debt shrank to 18.6 trillion won (USD12.8 billion dollars), raising the net cash position to 69.4 trillion won (USD47.7 billion).
The company said that it was expanding multi-year contract discussions with customers to secure mid-to-long-term supply stability amid spiking chip demand, emphasising that it had finalised long-term agreements (LTAs) with some 10 customers, including key strategic partners. – BERNAMA-XINHUA
