South Korea's SK hynix Posts Record Financial Performance

Seoul (ANTARA) - South Korean memory chip maker SK hynix posted record profits in the second quarter, driven by sustained demand growth from increased investment in artificial intelligence (AI) infrastructure, the company announced on Wednesday.

The company’s operating profit jumped 557.2 per cent from a year earlier to 60.54 trillion won (1 won = Rp12.39), or approximately US$41.6 billion (US$1 = Rp18,088), in the April-June quarter, with an operating margin of 76 per cent.

Revenue also surged 256.8 per cent to 79.32 trillion won, while net profit rocketed 1,242.5 per cent to 93.92 trillion won.

The company emphasised that the revenue marks its highest quarterly performance in its history.

DRAM and NAND flash memory prices 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 eSSDs.

The chipmaker’s cash and cash equivalents reached 88 trillion won at the end of June, up 33.6 trillion won from three months earlier.

Total debt shrank to 18.6 trillion won, boosting its net cash position to 69.4 trillion won.

The company said it is expanding discussions on multi-year contracts with customers to secure medium- to long-term supply stability amid the surge in chip demand, emphasising that it has completed long-term agreements (LTA) with around ten customers, including key strategic partners.