ANL 10.41 Decreased By ▼ -0.73 (-6.55%)
ASC 9.21 Decreased By ▼ -0.34 (-3.56%)
ASL 11.77 Decreased By ▼ -0.88 (-6.96%)
AVN 76.05 Decreased By ▼ -2.65 (-3.37%)
BOP 5.49 Decreased By ▼ -0.19 (-3.35%)
CNERGY 5.37 Decreased By ▼ -0.41 (-7.09%)
FFL 6.71 Decreased By ▼ -0.29 (-4.14%)
FNEL 5.93 Decreased By ▼ -0.23 (-3.73%)
GGGL 11.30 Decreased By ▼ -0.80 (-6.61%)
GGL 16.50 Decreased By ▼ -1.30 (-7.3%)
GTECH 8.53 Decreased By ▼ -0.63 (-6.88%)
HUMNL 7.22 Decreased By ▼ -0.38 (-5%)
KEL 2.87 Increased By ▲ 0.03 (1.06%)
KOSM 3.10 Decreased By ▼ -0.18 (-5.49%)
MLCF 25.99 Decreased By ▼ -1.81 (-6.51%)
PACE 3.15 Decreased By ▼ -0.13 (-3.96%)
PIBTL 6.04 Decreased By ▼ -0.45 (-6.93%)
PRL 18.15 Decreased By ▼ -1.36 (-6.97%)
PTC 7.01 Decreased By ▼ -0.22 (-3.04%)
SILK 1.17 Decreased By ▼ -0.09 (-7.14%)
SNGP 33.25 Decreased By ▼ -0.60 (-1.77%)
TELE 11.12 Decreased By ▼ -0.45 (-3.89%)
TPL 9.22 Decreased By ▼ -0.82 (-8.17%)
TPLP 20.17 Decreased By ▼ -1.44 (-6.66%)
TREET 28.70 Decreased By ▼ -1.50 (-4.97%)
TRG 75.75 Decreased By ▼ -2.45 (-3.13%)
UNITY 20.28 Decreased By ▼ -0.91 (-4.29%)
WAVES 12.60 Decreased By ▼ -0.88 (-6.53%)
WTL 1.45 Decreased By ▼ -0.02 (-1.36%)
YOUW 4.75 Decreased By ▼ -0.35 (-6.86%)
BR100 4,083 Decreased By -179.3 (-4.21%)
BR30 14,985 Decreased By -647.2 (-4.14%)
KSE100 41,052 Decreased By -1665.2 (-3.9%)
KSE30 15,662 Decreased By -690.8 (-4.22%)

SEOUL: South Korean chipmaker SK Hynix Inc said it expects supply chain issues to gradually improve from the second half of the year and demand for memory chips to grow, after booking a four-fold on-year increase in fourth-quarter operating profit.

The world's second-biggest memory chipmaker joined other technology companies including bigger rival Samsung Electronics Co Ltd in flagging chip demand growth coupled with lingering supply chain snarls in 2022, as it forecast strong memory chip demand from data centres and other server clients.

"The long-term outlook for high-performance memory products, including server products is highly positive," SK Hynix said in an earnings briefing on Friday.

South Korea stocks post biggest drop in five weeks

"Demand is rising due to factors such as the exploration of non-face-to-face infrastructure build-up, dissemination of AI (artificial intelligence) machine learning, and emergence of NFTs (non-fungible tokens) and metaverse as new applications."

In NAND flash memory chips that serve the data storage market, SK Hynix last month completed the first phase of its acquisition of Intel Corp's NAND business. With that acquisition, SK Hynix expects NAND flash sales to double this year from last, it said on Friday.

For DRAM chips that are widely used in data centres and tech devices, SK Hynix on Friday said it plans to manage inventory flexibly while focusing on profitability in 2022.

SK Hynix said 2022 capital expenditure will increase versus 2021's 13.4 trillion won ($11.12 billion), mostly due to large construction and infrastructure investment such as the purchase of a future chip factory site in South Korea and a research-and-development centre in the United States.

In a regulatory filing on Friday, it said it would invest about 2.4 trillion won in Wuxi, China, where it has a chip factory, as part of ordinary investment for business operations, with supplementary investment in production facilities.

Shares in SK Hynix rose as much as 6.6% versus the wider market's 1.4% after the chipmaker announced a 2022-2024 shareholder return policy that involved increasing fixed dividends by 20% and using about 50% of newly generated free cash flow for shareholder returns.

The chipmaker, whose clients include Apple Inc, reported 4.2 trillion won in October-December profit, its highest quarterly profit since 2018 and up from 959 billion won a year earlier.

Revenue climbed 55% to a record 12.4 trillion won.

Comments

Comments are closed.