Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen OC_Formula for the clue delivery! CTOnews.com November 16 news, SK Hynix's latest financial report shows that Solidigm (the former Intel NAND business, which was acquired by SK Hynix in 2021) suffered a loss far exceeding market expectations in the third quarter, and can even be said to have fallen into a state of full loss.

The company's cumulative loss for the whole of last year was about 3.3 trillion won (currently about 18.348 billion yuan), but the cumulative loss in the first three quarters of this year alone has reached 3.67 trillion won (CTOnews.com Note: currently about 20.419 billion yuan).

SK Hynix bought Intel's NAND business for $9 billion (currently about 65.25 billion yuan) in 2021 and later renamed Solidigm, and its cumulative losses over the past two years totaled 8.7 trillion won (currently about 48.372 billion yuan), which is close to the original offer of SK Hynix ($7 billion).

However, not only the NAND industry, but also DRAM is in trouble because of weak demand, so although the deficit of Solidigm is large, it has not attracted much attention, and the deterioration of the industry as a whole is considered to be more serious.

As the NAND industry picks up, Solidigm can turn things around faster than expected. An industry source said: "in the fourth quarter, Solidigm began to receive additional supply requests from global server customers."the average price of NAND will also rise above the average market expectation."

"in the unprecedented deterioration of the entire NAND market, the capital impairment of Solidim is only a temporary phenomenon, and as the industry situation improves, the capital impairment can be resolved," said the SK hynix representative. "it is expected that from the fourth quarter, the company's operating loss will gradually reduce, and the capital impairment will be gradually reduced and resolved when profitability improves and the market recovers."

"in order to improve our operations, we have been committed to reducing costs through production cuts and staff restructuring, and eliminating inefficiencies in duplication with headquarters. In the future, we plan to optimize enterprise-class solid state drives (eSSD) and strengthen our product portfolio to adapt to the improving market based on our strengths in customer base diversification and firmware technology."

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