Memory and image sensor-maker SK Hynix reported market conditions improved in the first quarter, leading to an 18% jump in revenue for a total of 8.5 trillion KRW ($7.6 billion US).
The South Korean company is the third largest semiconductor maker globally by revenues behind top-ranked Intel and Samsung in the second spot. Samsung, also based in South Korea, this week reported improved revenues for the quarter in its chip business but saw a 15% decline in operating profit partly due to a winter storm in Texas that suspended its fab operations for a time.
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SK Hynix said demand for memory products for PCs and mobile phones improved. Operating profit improved by 66% for the quarter, reaching 1.3 trillion KRW ($1.2 billion). DRAM memory sales increased by 4% over the prior quarter, while NAND Flash improved by 21%.
In a statement, the company said it is “optimistic” about market conditions after the first quarter, with stronger than expected demand growth in the IT market.
During a call with analysts on Wednesday, CFO Kevin Noh reported SK Hynix has decided to increase capital spending in the second half of 2021 by pulling in a part of its capex for 2022 to increase chip production. The move occurs during increased chip equipment spending due to the global semi supply shortage and the increased lead time in equipment purchasing and set up, he said.
Separately, STMicroelectronics based in Geneva on Thursday reported $3.02 billion in Q1 revenues, an improvement of 35% year over year. Net income was $364 million.
The company’s auto and discrete group saw $1.04 billion in sales, up by 38% year-over-year, while its analog, MEMS and sensors group saw $1.08 billion in sales, up by 27%, and its microcontrollers and digital ICs group saw $886 million in sales, up by 42%.
STMicroelectronics expects revenues to be $2.9 billion in the second quarter, down nearly 4% sequentially.