SK hynix Sees US Sales Surge on AI Memory Demand
SK hynix's revenue from the US made up nearly 70% of its total sales in the first half of the year, driven by strong demand for AI-focused high-bandwidth memory (HBM) chips. This growth helped the company reduce debt and increase investments.
From January to June, SK hynix reported US revenue of 27.83 trillion won ($20.02 billion), which is 69.8% of its total sales of 39.87 trillion won, according to a recent regulatory filing. Its US unit, SK hynix America, saw sales more than double compared to last year, reaching 24.7 trillion won versus 12.2 trillion won previously.
Why AI Memory Matters
The surge in sales comes mostly from high demand for HBM, a specialized type of DRAM chip used in AI accelerators. SK hynix is a leading supplier in this market, working with major clients like Nvidia.
“Demand for AI memory continued to grow, driven by aggressive investments from global big tech companies,” said Song Hyun-jong, SK hynix’s president and head of Corporate Center, during the Q2 earnings call.
SK hynix plans to double HBM sales and shipments this year compared to last year, pointing to further US revenue growth. Meanwhile, revenue from China declined to 7.36 trillion won in the first half, down from 8.61 trillion won a year earlier.
Stronger Finances and Increased Investment
The boost from HBM sales allowed SK hynix to repay over 800 billion won in borrowings within six months. Total debt fell to 21.84 trillion won at the end of June, down 842 billion won since January and 3.38 trillion won compared to last year.
With a healthier balance sheet, SK hynix is ramping up spending on future growth. R&D expenses hit 3 trillion won in the first half, already exceeding 60% of the 2024 total. Capital expenditure nearly doubled to 11.2 trillion won during the same period.
For sales professionals, this signals a strong market focus on AI memory solutions and growing opportunities within the US tech sector. Keeping an eye on HBM demand and SK hynix’s investment moves could provide valuable insight for sales strategies.
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