SK Hynix reported strong results in the first quarter of 2021, driven by increased memory demand and improved yields for key products.

SK Hynix announced its first-quarter 2021 financial results on the 28th. According to the results, consolidated revenue reached KRW 8.4942 trillion, an 18% increase year-over-year, and operating profit reached KRW 1.3244 trillion, a 65.5% increase year-over-year. Net income for the period reached KRW 992.6 billion, a 52.9% increase year-over-year.

As the semiconductor market improved early this year, SK Hynix posted better performance compared to the previous quarter and the same period last year.

The company said that while the first quarter is typically a seasonal slowdown, increased demand for memory products used in PCs and mobile devices contributed positively to its performance.

Additionally, the rapid improvement in yields of key products also enhanced cost competitiveness. This contributed to a 7% and 37% increase in sales and operating profit, respectively, compared to the previous quarter.

First, DRAM sales increased, particularly in mobile, PC, and graphics products. As a result, product shipments increased 4% compared to the previous quarter. NAND flash shipments increased 21% quarter-over-quarter, driven by increased sales of high-capacity products for mobile devices.

SK Hynix also presented a bright outlook for the market beyond the first quarter. It expects DRAM demand to continue to increase, and the NAND flash market to improve as well. SK Hynix plans to improve its performance by adapting to these circumstances.

Specifically, the company announced that it will supply high-capacity 12GB (gigabyte) MCP (Multi-Chip Package, a semiconductor that combines various types of chips into a single product) DRAM starting in the second quarter. The company also decided to increase production of its flagship 10nm-class third-generation (1z) DRAM product. The company added that it will begin mass production of fourth-generation (1a) products within the year using EUV.

SK Hynix emphasized that it will increase the sales proportion of 128-layer NAND flash products and begin mass production of 176-layer products within the year.

SK Hynix also expressed a strong commitment to ESG management. Vice President Noh Jong-won (CFO) in charge of management support stated, "Last year, we continued our ESG management activities, including strengthening our board-centered, responsible management system and participating in the Semiconductor and Display Carbon Neutrality Committee." He added, "Going forward, we will actively develop eco-friendly technologies and raise our RE100 standards, striving to make the semiconductor industry a model for ESG."