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SK Hynix sees growing memory chip demand as qtly profit jumps

SK Hynix said on Tuesday it expected favorable memory market conditions to continue into the second half of 2021, as it reported its biggest quarterly profit in more than two years.

SK Hynix, the world’s second-biggest memory chipmaker with customers including Apple Inc, “anticipates the demand for NAND Flash products will grow amid increasing adoption of high capacity storage in mobile devices,” it said in a statement.

Demand for enterprise solid state drives (SSDs), which are used in PCs, mobile phones and other devices, was also expected to increase, it said.

A months-long global shortage of semiconductors, fueled by pandemic-led demand for cars, phones, and cloud computing, has helped chipmakers post strong profits in the first half of the year.

SK Hynix said its April-June quarter operating profit rose 38% to 2.7 trillion won ($2.3 billion), as memory chip demand for PCs and other devices surged rapidly and demand from computer server operators recovered.

It was the company’s highest quarterly profit since the fourth quarter of 2018, data showed, up from 1.9 trillion won a year earlier, and in line with a Refinitiv Smartestimate of a 2.7 trillion won profit.

Second quarter revenue rose 20% on-year to 10.3 trillion won.

While many executives and industry experts expect the chip shortage to continue well into next year, some companies like Taiwan’s TSMC and Volkswagen have flagged that the crunch is easing for the auto industry.

SK Hynix’s rival and top memory chipmaker Samsung Electronics, which is expected to report second-quarter results on Thursday, has flagged that profits will surge 53%. MarketScreener

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