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2 months ago
27
Source: AFP
South Korean spot elephantine SK hynix reported grounds quarterly profits Thursday acknowledgment to soaring planetary request for artificial intelligence, highlighting the firm's quality to upwind mounting tariff threats.
The world's second-largest representation spot shaper dominates the marketplace for high-bandwidth representation (HBM) semiconductors and is simply a cardinal supplier for US titan Nvidia.
SK hynix said it recorded an operating nett of 7.44 trillion won ($5.19 billion) -- a astir 158 percent year-on-year summation -- connected revenues of 17.64 trillion won from January–March.
Both figures marked the company's second-highest quarterly results connected record, pursuing past quarter's performance.
The quality comes aft Taiwanese spot elephantine TSMC past week announced a surge successful nett net for the archetypal 4th and forecast robust request for artificial quality technology, contempt the spectre of US tariffs connected the captious sector.
Net income besides quadrupled compared to the erstwhile twelvemonth to 8.11 trillion won ($5.67 billion), with the steadfast saying the "memory marketplace ramped up faster than expected owed to contention to make AI systems and inventory accumulation demand".
The institution added that its yearly HBM income for this twelvemonth are expected to treble compared to past year.
Despite the news, SK hynix's shares fell much than 1 percent successful Seoul greeting trade.
Less affected
South Korea is simply a large exporter to the United States and its powerhouse semiconductor and car industries would endure greatly nether President Donald Trump's looming 25 percent tariffs.
The state is besides location to the world's largest representation spot maker, Samsung.
Experts accidental SK hynix's resilience is due to the fact that of the company's maturation successful the DRAM market.
SK hynix precocious took the pb successful DRAM revenues with a 36 percent marketplace share, according to specializer probe steadfast Counterpoint, surpassing Samsung for the archetypal clip and marking the archetypal alteration successful the apical spot successful implicit 4 decades.
"Right present the satellite is focused connected the interaction of tariffs, truthful the question is: what's going to hap with HBM DRAM?" said Counterpoint probe manager MS Hwang.
"At slightest successful the abbreviated term, the conception is little apt to beryllium affected by immoderate commercialized daze arsenic AI request should stay strong. More significantly, the extremity merchandise for HBM is AI servers, which -- by explanation -- tin beryllium borderless."
During a league call, SK hynix noted that "uncertainty has grown astir request for semiconductors", but income plans for cardinal clients for the institution this twelvemonth "remain unchanged".
"Global customers are, overall, maintaining their antecedently discussed representation request levels with us," said an SK hynix official.
"Additionally, immoderate clients are pulling guardant request by requesting short-term proviso advances," the institution said.
The institution besides noted that portion astir three-fifths of its income are to US-based customers, tariffs use lone to products shipped straight to the United States.
"Even erstwhile our clients are headquartered successful the US, representation products are often shipped to locations extracurricular the US, meaning the existent proportionality of nonstop exports to the US is not peculiarly high," an SK hynix authoritative said.
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Source: AFP
