SK Hynix achieved its highest quarterly performance in the second quarter of 2022, driven by rising NAND prices and increased overall sales volume, despite falling DRAM prices.

SK Hynix announced its second-quarter 2022 business results on the 27th. According to the report, revenue was 13.811 trillion won, a 33.8% increase year-on-year, and operating profit was 4.1926 trillion won, a 55.6% increase year-on-year. Net profit was 2.8768 trillion won, a 44.7% increase year-on-year.

This is the first time SK Hynix has recorded quarterly revenue in the 13 trillion won range. Previously, the company's highest quarterly revenue was 12.3766 trillion won, recorded in the fourth quarter of last year.

An SK Hynix official explained, “In the second quarter, revenue increased as NAND prices rose despite a decline in DRAM prices, and overall sales volume grew,” adding, “The continued strength of the US dollar and the addition of Solidigm’s performance were also positive factors.”

In addition, the company recovered an operating profit in the 4 trillion won range and an operating profit margin in the 30% range in just two quarters, following the fourth quarter of last year. This is because profitability has increased as the yield of the main products, the 10-nanometer class 4th generation (1a) DRAM and 176-layer 4D NAND, has improved.

The company stated, “We attach significance to achieving excellent business performance despite a challenging business environment, including global inflation, the prolonged war between Russia and Ukraine, and COVID-19 lockdowns in some regions of China.”

Regarding the outlook for the second half of the year, SK Hynix predicted that demand for memory semiconductors would slow. This is because shipments of devices such as PCs and smartphones, which use memory, are expected to fall short of initial forecasts.

In addition, it is anticipated that demand for server memory supplied to companies operating data centers may also slow down as customers prioritize depleting their existing inventory.

However, the company predicted that demand for memory in data centers would grow steadily in the mid-to-long term.

Regarding future business plans, SK Hynix stated that it will carefully review next year's investment plans while monitoring product inventory levels in the second half of the year.

SK Hynix President of Business Operations Noh Jong-won stated, “Although uncertainty has recently increased across the global economy, we remain confident in the long-term growth potential of the memory industry,” adding, “The company will focus on strengthening fundamental business competitiveness while flexibly adapting to changes in the business environment.”