SK Hynix Inc. has marked a significant financial rebound, posting record revenues of 12.43 trillion won and an operating profit of 2.886 trillion won for the first quarter of 2024. These figures represent an all-time high for first-quarter revenues and the second-highest operating profit since Q1 of 2018. The sharp increase in profits, up 734% on-quarter, is attributed to robust sales in AI server products and a strategic focus on high-margin products such as eSSD.
As the demand for artificial intelligence (AI) memory soars, SK Hynix has taken a leadership role, particularly with its high-bandwidth memory (HBM) technology, driving a resurgence in its financial performance. The NAND business also showed a turnaround with rising average selling prices and a growing sales ratio of premium eSSD products.
The company anticipates continued growth in the memory market, backed by rising demand for AI memory and a recovery in the DRAM market. SK Hynix has started mass production of HBM3E and plans to introduce 32Gb DDR5 products later this year, aiming to consolidate its market leadership in high-capacity server DRAM.
On the NAND front, SK Hynix plans to expand sales of high-performance eSSD products and launch the fifth generation of PCIe cSSD for AI PCs, aligning product offerings with market demand.
The company’s strategic investments include accelerating the construction of the M15X fab in Cheongju to expand DRAM capacities and investing in advanced packaging facilities in Indiana and the Yongin Semiconductor Cluster. With these investments, SK Hynix expects to enhance its financial soundness and investment efficiency, further solidifying its position in the global memory market.
