SK hynix Reports Q4 Profit Amid High Demand for Memory Chips

In the fourth quarter of last year, SK hynix Inc., the world's second-largest memory chipmaker, announced a shift from losses to profits. This turnaround was attributed to the increasing demand for premium memory chip products.

Yonhap News reported that in a regulatory statement, the company said an operating profit of 346 billion won (US$259.4 million) for the October-December period, indicating a significant recovery compared to the loss of 1.91 trillion won suffered a year prior.

Net Loss Narrows to 1.37 Trillion Won; Sales Rise by 47.4%

The net loss for SK hynix in the fourth quarter of 2023 was reduced to 1.37 trillion won, showcasing a notable improvement from the 3.7 trillion won net loss in 2022. Additionally, sales surged by 47.4%, amounting to 11.3 trillion won. These positive figures represent a promising upturn in the company's financial performance.

According to Bloomberg, SK Hynix attributes its improved financial performance to a recovery in the memory market, driven by increasing demand for AI servers and mobile applications. Efforts toward improving profitability yielded positive results, resulting in SK hynix recording its first quarterly profit in a year.

Impressive Sales Growth of Flagship Products

Sales of SK hynix's flagship products witnessed significant growth, with the AI memory HBM3 and high-capacity mobile DRAM reporting sales increases of over four and five times, respectively, compared to the previous year. This surge in demand showcases the company's strong market presence.

SK hynix aims to continue its success by focusing on the upcoming fifth-generation HBM3E chips and the development of HBM4. The HBM3E is considered the leading memory product currently available, with mass production scheduled to commence in the first half of 2024. These investments in next-generation chips demonstrate SK hynix's commitment to innovation and meeting future demand.

Supplying DDR5 and LPDDR5T to Server and Mobile Markets

SK hynix plans to promptly increase its supply to server and mobile markets to meet the increasing demand for high-performance, high-capacity DRAM products, such as DDR5 and LPDDR5T. This strategic approach ensures the company remains competitive in a rapidly evolving technology landscape.

SK hynix acknowledges the relatively slow recovery in the NAND business and actively explores opportunities to streamline investments and costs. This proactive approach allows the company to allocate resources effectively and prioritize growth areas.

For 2023, SK hynix reported a net loss of 9.13 trillion won, reversing the profit of 2.24 trillion won in the previous year. The operating loss amounted to 7.73 trillion won, a significant decline compared to the profit of 6.8 trillion won in the previous year. Annual sales also dropped by 26.6%, totaling 32.76 trillion won.

Photo: SK hynix Newsroom