SK hynix Reports Fourth Quarter 2023 Financial Results

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This SK Hynix Q4 2023 earnings release documents the company's financial recovery driven by AI memory demand, particularly HBM3 and HBM3E products critical for AI accelerators like NVIDIA GPUs, providing insight into the compute supply chain underpinning AI development.

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Summary

SK Hynix reported its first quarterly operating profit in a year for Q4 2023, driven by surging demand for AI server memory products including HBM3 and DDR5. The company recorded revenues of 11.31 trillion won and operating profit of 346 billion won for the quarter. SK Hynix outlined plans to expand HBM3E mass production and develop HBM4 to meet growing AI infrastructure demand.

Key Points

•First quarterly operating profit in a year (346 billion won) driven by AI server and mobile demand recovery in Q4 2023.
•HBM3 sales grew more than 5x year-over-year, reflecting surging demand for AI accelerator memory.
•Company plans mass production of HBM3E and ongoing HBM4 development to maintain AI memory leadership.
•Full-year 2023 operating loss was 7.73 trillion won; recovery concentrated in AI-related high-performance DRAM.
•Plans to expand premium NAND (eSSD) and new module products (MCRDIMM, LPCAMM2) for AI server and on-device AI.

1 FactBase fact citing this source

Entity	Property	Value	As Of
SK Hynix	Revenue	$25 billion	Dec 2023

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SK hynix Reports Fourth Quarter 2023 Financial Results 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 

 
 

 
 
 
 
 



 


 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 #AI Memory #CXL #DRAM #eSSD #HBM3E #HBM4 #NAND 
 

 
 
 
 
 
 
 
 
 
 
 
 Press Release 사용안함 

 SK hynix Reports Financial Results for 2023, 4Q23

 
 
 January 24, 2024 
 
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 Reports first quarterly profit in a year, backed by demand recovery, industry rebound

 Revenues for 2023 at 32.77 trillion won, operating loss at 7.73 trillion won

 Aims to grow into &#8216;total AI memory provider&#8217; of optimal memory solutions

 
 
 Seoul, January 25, 2024

 SK hynix Inc. (or “the company”, www.skhynix.com ) announced today that it recorded an operating profit of 346 billion won in the fourth quarter of last year amid a recovery of the memory chip market, marking the first quarter of profit following four straight quarters of losses.

 The company posted revenues of 11.31 trillion won, operating profit of 346 billion won (operating profit margin at 3%), and net loss of 1.38 trillion won (net profit margin at negative 12%) for the three months ended December 31, 2023. (Based on K-IFRS)

 SK hynix said that the overall memory market conditions improved in the last quarter of 2023 with demand for AI server and mobile applications increasing and average selling price (ASP) rising. &#8220;We recorded the first quarterly profit in a year following efforts to focus on profitability,” it said.

 The financial results of the last quarter helped narrow the operating loss for the entire year to 7.73 trillion won (operating profit margin at negative 24%) and net loss to 9.14 trillion won (with net profit margin at negative 28%). The revenues were 32.77 trillion won.

 SK hynix said that sales of its main products, DDR5 and HBM3, increased by more than four and five times, respectively, compared with a year earlier, as the company took advantage of its market-leading technology in the DRAM space to actively respond to customer demand. In the NAND space, where a recovery is relatively slow, the company prioritized streamlining investments and costs.

 SK hynix will now proceed with mass production of HBM3E, a main AI memory product, and ongoing development of HBM4 smoothly, while supplying high-performance, high-capacity products such as DDR5 and LPDDR5T to server and mobile markets in a timely manner, to meet increasing demand for high-performance DRAM.

 The company also plans to make its technological leadership stronger by preparing high-capacity server module MCRDIMM 1 and mobile module LPCAMM2 2 to respond to ever-increasing demand for AI server and on-device AI adoption

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