First quarter sales reached KRW 12.4 trillion, the highest ever
Decided to increase investment in facilities such as Cheongju DRAM
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SK Hynix showed surprising performance that exceeded market expectations in the first quarter of this year. This is the result of a rise in the price of NAND flash, which has been sold at cost level, while sales of high value-added products such as high bandwidth memory (HBM) are booming.
SK Hynix announced on the 25th that it recorded sales of 12.4296 trillion won and operating profit of 2.886 trillion won in the first quarter.
This sales is the highest ever in the first quarter, and operating profit is also the second record since 2018. An SK Hynix official explained, “We believe that we have escaped the long-term downturn and are entering a clear performance rebound.”
Looking at each customer, sales of artificial intelligence (AI) memory such as HBM increased. SK Hynix explained that NAND also saw an increase in average selling price (ASP) as sales volume increased centering on eSSD, a premium product.
SK Hynix has decided to increase the supply of the world’s first 5th generation HBM (HBM3E), which began mass production in the future, in line with the expansion of demand for AI memory, while expanding its customer base. In addition, the company plans to strengthen its leadership in the high-capacity server DRAM market, which has continued to be strong, by launching a 10-nano 5th generation (1b)-based 32Gb double data rate (DDR) 5 product within the year.
In the case of NAND, we plan to pursue product optimization to continue the performance improvement trend.
This year’s facility investment was decided to increase somewhat compared to the plan at the beginning of the year. SK Hynix announced at its board of directors meeting on the 24th that it would invest up to 20 trillion won to build a new DRAM factory in Cheongju. A state-of-the-art packaging line is about to be built in Indiana, USA.
Vice President Kim Woo-hyun (CFO) said, “Based on the world’s No. 1 AI memory technology centered on HBM, our company has begun a full-fledged rebound,” adding, “We will continue to improve our performance through timely supply of the best performance products and a profitability-oriented management policy.” He said.
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Tags: Hynixs trillion won earnings surprise quarter .. Expansion HBM supply
