News about SK Hynix

SK hynix has launched a 2 trillion won ($1.5 billion) financing program with major commercial banks and a state-run trade insurer to help domestic chip suppliers secure cheaper funding. Under the deal, SK hynix and the participating banks will contribute 100 billion won, while the Korea Trade Insurance Corporation will provide guarantees worth up to 20 times that amount, supporting as much as 2 trillion won in financing. The initiative targets small and midsized suppliers of semiconductor materials, parts and equipment, who face high borrowing costs. The company is also building the Trinity Fab, an 870 billion won testing facility at the Yongin cluster where suppliers can validate products under real manufacturing conditions.

The author says that if he could own only one AI memory stock for the next five years, he would choose SK Hynix (SKHY) over Micron (MU). According to Counterpoint Research, SK Hynix accounted for 50% of global HBM revenue in the second quarter, nearly as much as Samsung and Micron combined, thanks to early investment in advanced memory packaging and manufacturing. The company began mass shipments of HBM4 in the second quarter and is developing HBM4E. Demand comes not only from Nvidia but also from AI hyperscalers such as Alphabet, Amazon, Microsoft, Meta, OpenAI and Anthropic, which are developing custom chips. The author notes that SK Hynix's valuation remains fairly modest on a forward P/E basis relative to its earnings growth.