Micron versus SK Hynix

  • Moat: SK hynix's moat is in manufacturing (medium durability) and scale; Micron's is contractual (better customer terms) and geopolitical.
  • Growth: Micron has the broader growth path and SK hynix the more valuable single cell (HBM).
  • Margin: SK Hynix has higher growth margin through a cycle due to mix (more HBM) and scale (R&D spend and depreciation spread over a larger revenue base).
  • Demand: Micron is exposed to a price downturn, SK Hynix to HBM (Samsung's expansion) or China shock.
  • Supply: SK hynix absorbs price shocks better (e.g. in 2023); Micron carries less political license risk but concentrates its DRAM output in Taiwan.
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