SK Hynix hails 'remarkable turnaround' with 4Q 2023 profit
South Korean memory chipmaker SK Hynix has posted its first profit in four quarters to confound analyst forecasts.
The company posted an operating profit of 346 billion won (USD 259 million) in Q4 2023 to end a run of four consecutive quarters of loss. For the year, SK Hynix reported total revenues for the of 32.77 trillion won (USD 2.46 billion), with a narrowed operating loss of 7.73 trillion won (USD 5.7 billion).
SK Hynix attributed the excellent performance to surging demand for AI server and mobile applications. It believes the results vindicate its focus on the DRAM space and its main products, DDR5 and HBM3, which increased sales by more than four and five times, respectively.
The company looks also to be reaping the rewards of cost-cutting across 2023. It says it reduced CAPEX by more than 50% and also minimised OPEX.
SK Hynix now expects the overall memory market to record growth in the mid-to-high teens this year as prices continue to improve. It outlined plans to continue focusing on high-performance DRAM products, such as HBM3E and HBM4, to meet the rising demand for AI memory, AI servers and on-device AI applications.
The company is now considering producing its DDR5 and LPDDR5 memory products at its fab in Wuxi, China by transitioning the production line to 10-nanometer class products.
Kim Woohyun, Vice President and Chief Financial Officer (CFO) at SK Hynix, said: "We achieved a remarkable turnaround, marking the first operating profit in the fourth quarter following a protracted downturn, thanks to our technological leadership in the AI memory space. We are now ready to grow into a total AI memory provider by leading changes and presenting customized solutions as we enter an era for a new leap forward."
SK Hynix's positive results were reported days after similarly encouraging financials from chip maker TSMC and lithography specialist ASML.