Raw Material and Labor Costs Also Increase
R&D Expenses Reach Record High
Last year, SK Hynix's inventory increased significantly. This was affected by the global economic downturn and the semiconductor industry slowdown.
According to the consolidated audit report disclosed by SK Hynix on the 10th, as of the end of 2022, SK Hynix's inventory assets were recorded at 15.6647 trillion KRW. This is an increase of about 6.7 trillion KRW (75%) compared to 8.9501 trillion KRW at the end of 2021.
Looking at the types of inventory assets, finished goods and merchandise inventory increased nearly threefold from 1.2819 trillion KRW to 3.8421 trillion KRW. Work-in-progress inventory, which refers to products in the manufacturing process, also increased by more than 3 trillion KRW, from 5.8123 trillion KRW to 9.0942 trillion KRW.
Due to the impact of inflation, raw material purchasing costs and others surged. SK Hynix's costs for raw materials, supplies, and consumables last year amounted to 11.1509 trillion KRW, a 35.2% (2.977 trillion KRW) increase from 8.2432 trillion KRW the previous year.
The burden is believed to have increased as raw material prices continued to rise due to supply chain disruptions caused by the Russia-Ukraine war and other factors.
Employee salaries surged to 7.8544 trillion KRW last year, up 47.9% (2.5236 trillion KRW) from 5.3118 trillion KRW the previous year. This is attributed to large performance bonuses paid due to the previous year's strong results and significant wage increases amid competition with Samsung Electronics to attract semiconductor talent.
However, despite the semiconductor industry downturn, research and development (R&D) expenses reached an all-time high. SK Hynix's total R&D expenditure last year was 4.0835 trillion KRW, a 22.7% (889.4 billion KRW) increase compared to 3.9141 trillion KRW the previous year.
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