SK Hynix reports customers advancing orders ahead of potential U.S. tariffs

South Korean chipmaker SK Hynix said Thursday that some customers have accelerated orders in anticipation of potential U.S. tariffs on semiconductors, contributing to improved market conditions. However, the company cautioned that it remains unclear whether this trend will persist.

South Korea’s SK Hynix, the world’s second-largest memory chipmaker, reported on Thursday that some customers have accelerated orders in anticipation of potential U.S. tariffs on semiconductors.

Speaking at the company’s annual shareholder meeting, Lee Sang-rak, SK Hynix’s Head of Global Sales and Marketing, noted that the early orders, combined with reduced inventory levels among clients, have contributed to favorable market conditions. However, he cautioned that it remains uncertain whether this trend will continue.

In January, SK Hynix projected a 10-20% decline in shipments of DRAM and NAND flash memory chips for the first quarter compared to the previous quarter. Meanwhile, U.S. chipmakers Micron and SanDisk, along with China’s YMTC, have reportedly raised memory chip prices, partly due to strong demand from the AI sector. These companies have not yet commented on the matter.

U.S. President Donald Trump announced in February that he intends to impose tariffs of approximately 25% on semiconductor imports, among other products. Analysts at Nomura noted this week that concerns over these potential tariffs have led to preemptive transfers of semiconductor inventory to the United States. However, they also cautioned that if the tariffs are implemented, they could lead to higher consumer prices and potentially dampen demand.

SK Hynix remains optimistic about its business outlook, particularly in high-bandwidth memory (HBM) chips. CEO Kwak Noh-Jung told shareholders that demand for HBM chips, which are critical for AI applications, is expected to see “explosive growth” this year, supported by continued investments in data centers.

The company has already sold out its HBM sales for 2025 and plans to finalize 2026 sales agreements within the first half of this year to enhance revenue stability, Kwak said.

While some industry observers raised concerns about a slowdown in AI hardware spending—particularly after Chinese startup DeepSeek claimed to have developed cost-efficient AI models—Nvidia, a key player in the sector, recently reaffirmed strong demand for AI chips. Kwak suggested that companies like DeepSeek could ultimately contribute to medium-to-long-term demand for AI memory chips rather than reducing it.

Read next

10:44

World News

China launches new communication technology test satellite

China successfully launched a new communication technology test satellite into space on Friday, state-run media reported.

09:52

TÜRKİYE

Türkiye’s 2030 industry and technology strategy unveiled

Turkish President Recep Tayyip Erdogan has unveiled Türkiye’s 2030 Industry and Technology Strategy Document, outlining a comprehensive roadmap to boost the country’s technological independence and industrial strength.

10:57

Innovations & Technology

China’s Shaky Upper Hand in the Robotics Race

Despite its dominance in industrial robotics, China faces challenges in the race for humanoid robots due to its reliance on foreign technology and U.S. trade restrictions.

12:00

Artificial Intelligence

Scientists use Artificial Intelligence to reveal text in Ancient Scrolls

The inside of a Herculaneum delicate & ancient scroll, unseen for nearly 2,000 years, has been revealed using Artificial Intelligence.

10:53

Starlink Deal

Musk and Ambani strike surprising Starlink partnership for India

Mukesh Ambani’s Reliance Jio has partnered with Elon Musk’s SpaceX to bring Starlink to India after months of rivalry. The deal, pending government approval, provides Starlink with a low-cost entry, tapping into India's booming satellite market while boosting Jio’s reach.