SK Hynix Q1 profit jumps on server chip demand, but mobile chip demand eases

SOUTH Korea’s SK Hynix on Wednesday (Apr 27) posted a 116 per cent jump in first-quarter earnings, supported by solid demand from server clients but slightly missing market expectations due to weaker demand for mobile chips.

The world’s second-biggest memory chipmaker said its operating profit rose to 2.9 trillion won (S$3.2 billion) in the January-March quarter, its highest first-quarter profit since 2018, up from 1.3 trillion won a year earlier.

However, the profit was below analysts’ expected profit of 3.1 trillion won, according to Refinitiv SmartEstimate.

Revenue climbed 43 per cent on-year to 12.2 trillion won.

A disruption at a rival NAND flash chip plant owned by Japan’s Kioxia and Western Digital in February due to contamination of raw materials led to solid shipments and a quarter-on-quarter price rise for NAND flash chips, analysts said.

However, slowing demand for mobile chips due to China’s Covid-19 lockdown and inflationary pressures weighed on earnings. REUTERS