Bulletin: SK Hynix's Strong Q4 Results Highlight Operating Strength

HONG KONG (S&P Global Ratings) Feb. 4, 2022--SK Hynix Inc.'s strong results in the fourth quarter of 2021 underscore the company's operating strengths and are consistent with our positive rating outlook. We believe the Korea-based semiconductor company will maintain strong operating performance throughout 2022 on the back of favorable industry trends, as well as completion of the acquisition of Intel Corp.'s NAND flash capacity in December 2021. The operating performance of SK Hynix (BBB-/Positive/--) in 2021 was largely in line with our expectation. Revenue and operating profit grew 35% and 148%, respectively, thanks to strong demand and good memory semiconductor prices. The prolonged COVID-19 pandemic has led to a sharp increase in demand for remote access and data processing/storage. The

...February 3, 2022 HONG KONG (S&P Global Ratings) Feb. 4, 2022--SK Hynix Inc.'s strong results in the fourth quarter of 2021 underscore the company's operating strengths and are consistent with our positive rating outlook. We believe the Korea-based semiconductor company will maintain strong operating performance throughout 2022 on the back of favorable industry trends, as well as completion of the acquisition of Intel Corp.'s NAND flash capacity in December 2021. The operating performance of SK Hynix (###-/Positive/--) in 2021 was largely in line with our expectation. Revenue and operating profit grew 35% and 148%, respectively, thanks to strong demand and good memory semiconductor prices. The prolonged COVID-19 pandemic has led to a sharp increase in demand for remote access and data processing/storage. The company's NAND business turned profitable in 2021 due to cost improvements, and profitability should expand further in 2022. We estimate Hynix's revenue growth to moderate to 10%-15%,...

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