South Korea's SK hynix Posts Record Financial Performance

South Korean memory chip manufacturer SK hynix reported record earnings for the second quarter, driven by sustained demand from increased investment in artificial intelligence (AI) infrastructure, the company announced on Wednesday. The company’s operating profit surged 557.2 per cent year-on-year to 60.54 trillion won (approximately 41.6 billion US dollars) in the April-June quarter, with an operating margin of 76 per cent. Revenue also soared 256.8 per cent to 79.32 trillion won, while net profit skyrocketed 1,242.5 per cent to 93.92 trillion won. The company emphasised that this revenue marks the highest quarterly performance in its history. Prices for DRAM and NAND flash memory rose significantly quarter-on-quarter, allowing SK hynix to achieve top-tier profitability by expanding sales centred on high-value-added products such as HBM, DRAM for AI servers, and eSSD. The chipmaker’s cash and cash equivalents reached 88 trillion won at the end of June, an increase of 33.6 trillion won from three months earlier. The company’s total debt shrank to 18.6 trillion won, boosting its net cash position to 69.4 trillion won. The company stated it is expanding multi-year contract discussions with customers to secure mid- to long-term supply stability amid the surge in chip demand, emphasising that it has completed long-term agreements (LTAs) with around 10 customers, including key strategic partners.