SK Hynix Records Explosive Financial Growth, Unveils 32 Gb DDR5 DRAM For Up To 64 GB Capacities

SK Hynix Records Explosive Financial Growth, Unveil 32 Gb DDR5 DRAM For Up To 64 GB Capacities 1

SK Hynix announced its Q1 2024 financial results, revealing explosive growth across several segments, credit to the AI boom and NVIDIA.

The Korean giant witnessed tremendous growth within this quarter, and it seems like it has finally found its grip in the markets. SK Hynix recorded a whopping 12.43 trillion won in revenues, of which 2.89 trillion was regarded as operating profit, equal to almost $2.1 billion.

The firm managed to grasp a 23% profit from its total revenue, which is seen as the second-highest, following the firm's performance in Q1 2018. SK Hynix believes that the firm has finally seen its economic rebound, entering an era of consistent market dominance.

Moreover, SK Hynix notes that they experienced a gigantic 734% jump in quarterly operating profits revenue, simply accrediting it to how massive the AI hype has been for them. The company notes that the AI segment is going to catalyze its financial performance over the upcoming months, and with the DRAM industry now on its way toward recovering, the firm sees recouping its lost profits as well. SK Hynix has also shown huge optimism about its HBM3E supply, claiming that it has received massive interest from industry clients. The main highlights include:

In March, began mass production/supply of 1bnm HBM3E Increase HBM3E supply in-line with customers’ demand

Expand customer base using increased production capability

Signed MOU with TSMC for development of HBM4 and collaboration on next-generation packaging technology

Strong sales of 128GB+ modules contributed to DDR5 sales

1bnm 32Gb DDR5 product to be launched to support high-density SV DRAM demand

Plan to launch PCIeGen5 cSSD within ‘24 for adoption in AI PCs

Talking a bit about future processes, SK Hynix also announced that their 1bnm 32 Gb DDR5 memory is on track, set to debut within this year, which means that a single DIMM can achieve a capacity of 64 GB, with enterprise-grade enjoying a massive 128 GB capacity through the new advancement. Entering into the AI PC era, memory will play a crucial role in the processing power, and the Korean giant wants to capitalize on this, joining the likes of Samsung with their 5th-generation 10nm technology.

With the industry's best technology in the AI memory space led by HBM, we have entered a clear recovery phase. We will continue to work towards improving our financial results by providing the industry's best performing products at a right time and maintaining the profitability-first commitment.

- Chief Financial Officer Kim Woohyun

Yet again, AI has managed to rescue another company from dwindling financial performance, and SK Hynix looks all set for a dominant future, especially with its close relations with leaders like TSMC and NVIDIA.

News Source: DigiTimes