SK Hynix has set a new record for quarterly performance, driven by surging demand for artificial intelligence (AI) semiconductors and rising prices for high-performance memory. For the first half of the year, the company’s cumulative revenue exceeded 100 trillion won for the first time.
On July 29, SK Hynix announced that its consolidated operating profit for the second quarter reached 60.54 trillion won, a 557% increase compared to the same period last year. Revenue was reported at 79.32 trillion won, up 257% from the previous year. These figures significantly surpassed the first quarter's revenue of 52.58 trillion won and operating profit of 37.61 trillion won.
SK Hynix's operating profit ranks fourth among global tech giants. Samsung Electronics topped the list with an estimated operating profit of 89.4 trillion won for the second quarter, followed by Nvidia (approximately 78 trillion won) and Apple (around 74 trillion won). Alphabet (about 59 trillion won) fell short of SK Hynix's performance.
The company’s profitability metrics have also significantly impacted the global semiconductor landscape. SK Hynix's operating profit margin for the second quarter was 76%, placing it second among global companies, just behind Micron (80.4%). This margin surpassed that of Nvidia (65.6%), TSMC (60.3%), and Apple (34%), demonstrating a high-value profit structure.
The surge in second-quarter results is attributed to increased investments in AI infrastructure by major tech companies. As AI evolves into performing agents, demand for DRAM and high-bandwidth memory (HBM) for AI servers, as well as enterprise SSDs (eSSD), has skyrocketed. Additionally, securing long-term supply contracts (LTA) with over 10 major clients has significantly enhanced the stability of its long-term business.
With record profits, SK Hynix has also strengthened its financial health. By the end of the second quarter, cash and cash equivalents increased by 33.6 trillion won from the previous quarter to 88 trillion won, while borrowings decreased to 18.6 trillion won, resulting in a net cash position of 69.4 trillion won.
Building on this performance, SK Hynix plans to focus on the mass production of next-generation HBM and the transition to advanced processes. The sixth-generation HBM (HBM4), which began mass production in the second quarter, will see expanded production in the second half of the year. The company also aims to complete its technological gap with the seventh-generation HBM (HBM4E) by applying optimal processes after sample supply.
The company is accelerating its production capacity expansion with the early establishment of mass production systems at the newly completed Cheongju M15X facility and the upcoming operation of the first fab at the Yongin cluster in 2027. SK Hynix stated, "We will continue to pursue long-term investments in advanced packaging plants P&T7 and NAND production base M17 to secure both technological leadership and financial soundness."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.