SK hynix posted its second-highest quarterly operating profit of 7.44 trillion won ($5.2 billion) for the January-March period this year, up 158 percent on-year. Achieving the record performance during the seasonal slowdown, the memory chip maker attributed its success to robust demand for high-value artificial intelligence chips and stockpiling ahead of anticipated US tariffs. A leading supplier of the popular high bandwidth memory chip, SK hynix reported Thursday that it has recorded quarterly sales of 17.6 trillion won, soaring 42 percent. With the strong performance, SK hynix has overtaken its larger rival Samsung Electronics in the global DRAM chip market during the first quarter, according to analysts. "Our improved operating margin amid a market downturn highlights both the structural shift in the memory industry driven by AI and our growing competitive edge," SK hynix Chief Financial Officer Kim Woo-hyun said Thursday, during the earnings call for the first quarter this year. SK hynix held a dominant 70 percent share of the global HBM market in the first quarter, continuing to benefit from its early lead, according to market tracker Counterpoint Research. The chipmaker said the memory chip market rebounded faster than anticipated, driven by intensifying competition to develop AI systems and increased demand for inventory buildup. In response, the company ramped up sales of high value-added products, including 12-layer HBM3E and DDR5 chips to meet the surging demand, it added. Given the nature of the HBM market -- where supply volumes are typically determined a year in advance -- SK hynix reiterated its earlier prediction that HBM demand will approximately double compared to last year. Sales of the latest 12-layer HBM3E are expected to increase to account for over 50 percent of total HBM3E revenue in the second quarter, the company explained. Amid growing concerns over the potential US tariffs on advanced chip sales, SK hynix acknowledged the US as a key customer base, but said it expects limited impact as many shipments to US-based clients are delivered outside the country. “Taking into account that AI-related products represent a high proportion of our sales, the percentage of revenue from US customers is quite significant, approximately 60 percent based on the corporate locations stated in our audit report,” Kim said. “But tariffs are imposed on shipments sent to the US and sometimes, even customers headquartered in the US, their memory product shipments often go to locations outside the US. Therefore the actual percentage of direct exports to the US is not that high.” While market uncertainty is likely to grow in the second half of the year due to potential tariff risks, the chipmaker underscored how global customers are maintaining their previously discussed demand for memory chips, and that some are even looking to pull forward their orders. Tariff deferrals on end products such as PCs and smartphones could also provide a boost to the market, according to the company's DRAM marketing chief, Kim Kyu-hyun. Regarding the outlook for high bandwidth memory demand, SK hynix predicted an average annual rate of about 50 percent between 2024 and 2028. “Next year, HBM4 is expected to be our flagship product as the number of IO channels for HBM4 will double compared to the previous model. HBM4 will significantly enhance bandwidth efficiency and are expected to drive sustainable demand growth,” said Kim Ki-tae, head of HBM sales and marketing, adding that the company plans to secure visibility for annual supply volume with major customers within the first half of this year. The company also confirmed that construction of its first fab in Yongin Semiconductor Cluster and M15X facility in Cheongju are progressing as planned. The Yongin fab, which broke ground in the first quarter this year, is expected to be completed by the second quarter of 2027, while the M15X fab is on track to begin operations in the fourth quarter of this year.   (ICE SEOUL)

Fonte notizia: The Korea Herald