SK Hynix loses money again and again: Solidigm's third-quarter loss far exceeded expectations

According to SK Hynix’s latest financial report, Solidigm (originally Intel’s NAND business, acquired by SK Hynix in 2021)’s losses in the third quarter far exceeded market expectations. It can be said that it has now fully fallen into Loss status

The company’s cumulative losses last year were approximately 3.3 trillion won (currently approximately 18.348 billion yuan), but the cumulative losses in the first three quarters of this year alone have reached 3.67 trillion won (notes on this site: Currently about 20.419 billion yuan).

SK Hynix spent US$9 billion (currently about 65.25 billion yuan) to acquire Intel's NAND business in 2021, which was later renamed Solidigm. Its cumulative losses in the past two years totaled 8.7 trillion won (currently approximately 48.372 billion yuan), which is close to the original offer (US$7 billion) made by SK Hynix when it was acquired.

However, not only the NAND industry, but also DRAM is in trouble due to low demand, so Solidigm has not received attention despite its large deficit, and the overall deterioration of the industry is considered to be more serious.

With the NAND industry gradually picking up, Solidigm could turn things around faster than expected. An industry insider said: "In the fourth quarter, Solidigm began to receive additional supply requests from global server customers." "The average price of NAND will also exceed the average market expectation."

Deteriorating day by day in the entire NAND market Against this background, Solidim's capital impairment is only a temporary phenomenon. A representative of SK hynix said: "As the industry situation improves, the capital impairment issue will be resolved. It is expected that starting from the fourth quarter, the company's operating losses will gradually decrease, and capital impairment will also gradually decrease, and profitability will improve and It will be resolved when the market recovers."

In order to improve operating conditions, we have been committed to reducing costs and eliminating the inefficiency of duplicative construction with the headquarters. We plan to achieve this goal through production reduction and employee reorganization. At the same time, we also plan to optimize enterprise-class solid-state drives (eSSD) and leverage our strengths in customer base diversity and firmware technology to strengthen our product portfolio to adapt to the improving market

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