- ORIGINAL NEWS
Nvidia supplier SK Hynix reverses losses in first quarter on explosive AI demand
- SUMMARY
South Korean memory chip giant SK Hynix has broken a streak of net losses with a remarkable turnaround in the first quarter of 2023.
The company posted a profit of 1.92 trillion won, a significant reversal from the loss of 2.58 trillion won it recorded in the same period last year.
This surge in profitability primarily stems from the growing demand for AI-related memory products, where SK Hynix holds a prominent position as a supplier of high-bandwidth memory.
Additionally, the company’s efforts to enhance profitability have paid off.
SK Hynix attributed its success to the increasing sales of AI server products, driven by the high demand for AI chipsets.
These AI chipsets are essential for advanced technologies like ChatGPT, which require high-performance memory chips to function effectively.
To meet this growing AI memory demand, SK Hynix plans to ramp up production of HBM3E, the latest generation of high-bandwidth memory.
The company will also introduce 32GB Double Data Rate 5 products to strengthen its leadership in the high-capacity server DRAM market.
Despite the positive performance in the first quarter, SK Hynix acknowledges that the memory market may experience fluctuations in the coming months.
However, the company remains optimistic about the long-term growth prospects in AI memory and expects the conventional DRAM market to recover in the second half of 2024.
In anticipation of the growing AI demand, SK Hynix is investing in a new fabrication plant in South Korea, scheduled for completion in 2025.
The plant will focus on producing the next generation of DRAM, including HBM, to meet the chip requirements for proliferating AI applications.
Furthermore, SK Hynix has forged a partnership with TSMC to develop high-bandwidth memory 4 chips and next-generation packaging technology.
This alliance combines SK Hynix’s memory expertise with TSMC’s advanced manufacturing capabilities, enabling the production of cutting-edge memory solutions.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“SK Hynix posted a net profit of 1.92 trillion South Korean won following five consecutive quarters of net losses.”
“South Korean memory chipmaker SK Hynix on Thursday reported a net profit of 1.92 trillion South Korean won ($1.39 billion) in the first quarter, reversing a loss of 2.58 trillion won logged in the same period a year ago.”
Negative
“SK Hynix posted net losses for five consecutive quarters from a slump in the memory chip market.”