Seoul: South Korean chipmaker SK hynix Inc. is estimated to have purchased about 20 trillion won (US$13.2 billion) worth of bonds this year as record earnings from the booming chip industry swelled its cash holdings, industry sources said Wednesday.

According to Yonhap News Agency, the chip giant's purchases span a broad range of high-grade credit products, including bonds issued by Korea Electric Power Corp., other public institutions, banks, financial firms, securities companies, and specialized credit finance companies. This strategic move has positioned SK hynix as one of the largest investors in the domestic credit market, leveraging its semiconductor earnings to manage excess liquidity effectively.

SK hynix posted record first-quarter earnings, reporting 52 trillion won in revenue and 37 trillion won in operating profit. Its cash and cash equivalents totaled 54.3 trillion won at the end of the January-March period, reflecting an increase of 19.4 trillion won from three months earlier. This financial momentum has also led to a significant surge in SK hynix's shares, which have risen more than 1,300 percent from their low in April last year.

On June 22, SK hynix briefly overtook its chip rival Samsung Electronics Co. to become South Korea's most valuable listed company by market capitalization for the first time in 25 years. The two companies are currently vying for the top spot in market capitalization, showcasing the intense competition in the semiconductor industry.