SEOUL, South Korea — SK Hynix Inc. (000660 KS), the second-largest memory chip manufacturer in the world, has reported record first-quarter revenue of KRW 12.43 trillion (US$9.05 billion) and a 734% increase in operating profit, indicating a robust recovery in the memory market.
The South Korean company's operating profit reached KRW 2.886 trillion (US$2.1 billion), with a margin of 23%, while net profit stood at KRW 1.917 trillion (US$1.4 billion), representing a 15% net margin.
SK Hynix attributed the solid performance to increased sales of AI server products and a focus on profitability.
The company anticipates that the memory market will continue to expand, driven by rising demand for AI memory and a recovery in the conventional DRAM market in the year's second half.
To strengthen its position in the high-capacity server DRAM market, SK Hynix plans to increase the supply of its industry-first HBM3E and introduce 32Gb DDR5 products based on the 1bnm process.
SK Hynix aims to sustain its earnings recovery in the NAND business by optimizing its product mix.
Through its U.S. subsidiary Solidigm, it will focus on high-performance 16-channel eSSD and QLC-based high-capacity eSSD.
Additionally, the company plans to launch the fifth generation of PCIe cSSD for AI PCs.
To facilitate its expansion, SK Hynix has announced plans to accelerate the construction of its M15X fab in Cheongju and invest in advanced packaging facilities in Indiana and the Yongin Semiconductor Cluster.
The company anticipates its capital expenditure in 2024 will exceed the initially planned amount.
"We will continue striving to enhance our financial performance by offering the industry's most effective products at the optimal time and maintaining our commitment to profitability." said CFO of SK Hynix
The robust performance of SK Hynix suggests the possibility of a reversal in the fortunes of the memory chip industry, which has experienced difficulties due to an excess of supply and weak demand in recent years.
US$1=KRW1,373.67
