SK hynix beats expectations with record sales in 2021
Published: 28 Jan. 2022, 15:31
SK hynix reported a 102.1 percent increase in net profit at 9.6 trillion won ($8 billion) last year compared to the previous period, helped by solid demand for memory chips.
The chipmaker announced on Friday that its operating profit came at 12.4 trillion won in 2021, up 146.7 percent on year while sales set an all-time high of 43 trillion won, up 35 percent.
Sales and net profit were in line with the market forecast, while the operating profit surpassed the consensus of 12.3 trillion won tracked by FnGuide.
The upbeat result was helped by a cyclical upturn in the semiconductor industry last year that boosted the prices of dynamic random access memory (DRAM) and NAND Flash memory chips.
The pandemic-induced demand for data center servers and electronics devices also continued to drive up sales of chips.
“Despite uncertain market conditions such as supply chain disruptions, demand for contactless IT technology has increased,” SK hynix said in a statement.
The upcycle, however, is projected to subside this year, with clients expected to turn more conservative toward stocking inventory, especially because of the ongoing chip shortage that delays the production of cars and smartphones.
Taiwanese market research TrendForce predicts a price decline of 8 to 13 percent for the average DRAM selling price this year.
The Korean chipmaker expects that downward trajectory to rebound in the second half of the year when the component shortage will likely be alleviated.
Looking to the upcoming quarter, SK hynix will focus on ensuring profitability instead of increasing the volume of sales by selling the products at cheaper prices.
“SK hynix decided to continue its strategy of focusing on profitability while containing market volatility by managing its DRAM inventory flexibly,” the company said in a statement.
Its NAND Flash business turned to profit last year thanks to surging sales of the 128-layer NAND flash, which has been popular among its clients after its 2020 release.
The supplier hopes to accelerate that growth, following the completion of the acquisition of Intel’s NAND business.
“For NAND Flash, SK hynix will continue to pursue growth in scale,” the company said.
“With the launch of its U.S. subsidiary Solidigm after the close of the first phase of Intel NAND and SSD business acquisition last year, SK hynix expects its NAND Flash sales will double compared to last year.”
In the final quarter alone, SK hynix registered 4.2 trillion won in operating profit, up 340 percent on year. Its sales came to 12.4 trillion won, up 55 percent compared to a year ago.
The chipmaker on Friday raised its dividends per share by 30 percent from the current 1,170 won to 1,540 won.
BY PARK EUN-JEE [park.eunjee@joongang.co.kr]
with the Korea JoongAng Daily
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