SK HYNIX INC S/GDR 144A - HXSCL STOCK NEWS

SK hynix has developed 'PS1012 U.2', a 61TB SSD designed for AI data centers using QLC technology. The new product features PCIe 5.0 connectivity, delivering data transfer speeds up to 32GT/s and doubling sequential read performance to 13GB/s compared to previous generation products. The company plans to provide samples to global server manufacturers within this year and expand the product line to 122TB in Q3 2024. SK hynix aims to develop 244TB products based on their 321-high 4D NAND technology. This development strengthens synergy with Solidigm in the AI data center SSD market and supports OCP 2.0 version for enhanced compatibility with various data center server devices.

SK hynix announced a new shareholder return program for 2025-27, increasing its annual fixed dividend by 25% to 1,500 won per share from 1,200 won. The total cash dividend is expected to reach 1 trillion won annually. The company will maintain its policy of allocating 50% of accumulated free cash flow for shareholder returns and set aside 5% for financial structure enhancement. Additionally, SK hynix introduced a 'Value Up' initiative that includes Capex Discipline, maintaining annual investment at mid-30% of revenues. The company aims to balance shareholder returns with financial soundness while strengthening its position in AI memory.

SK hynix has begun mass production of the world's first 321-high 4D NAND Flash with 1Tb capacity, featuring triple level cell technology. The breakthrough comes through the innovative 'Three Plugs' process technology, which enables stacking over 300 layers. The new product shows 12% improvement in data transfer speed, 13% better reading performance, and 10% enhanced power efficiency compared to previous generation. Production efficiency improved by 59%. The company plans to supply these products to customers from first half 2025, targeting AI applications that require low power and high performance.

SK hynix reported record-breaking Q3 2024 financial results with revenues of 17.5731 trillion won, operating profit of 7.03 trillion won (40% margin), and net profit of 5.7534 trillion won (33% margin). The company's success was driven by strong AI memory demand, with HBM sales increasing over 70% QoQ and 330% YoY. HBM represented 30% of DRAM revenues in Q3 and is expected to reach 40% in Q4. Both DRAM and NAND average selling prices rose in the mid-10% range compared to the previous quarter.

SK hynix has begun mass production of the world's first 12-layer HBM3E product with 36GB capacity, the largest in existing HBM. The company plans to supply these products to customers by the end of the year. This achievement comes six months after delivering the 8-layer HBM3E product in March.

Key features of the 12-layer HBM3E include:

• 50% increased capacity at the same thickness as the previous 8-layer product
• DRAM chips made 40% thinner
• Memory operation speed of 9.6 Gbps
• 10% higher heat dissipation performance

SK hynix aims to maintain its leadership in the AI memory market with this product, addressing the growing needs of AI companies.

SK hynix has announced that key features of its Heterogeneous Memory Software Development Kit (HMSDK) are now available on Linux, the world's largest open source operating system. HMSDK is SK hynix's proprietary software for optimizing the operation of Compute Express Link (CXL), a next-generation AI memory technology. The integration with Linux marks a significant milestone for SK hynix, highlighting its competitiveness in software.

HMSDK enhances memory package's bandwidth by over 30% and improves performance by more than 12% through optimization. SK hynix is currently validating CXL 2.0 memory in 96 GB and 128 GB capacities with customers and plans to begin mass production by the end of the year. The company aims to improve its status as a total AI memory solutions provider by innovating technologies and expanding the ecosystem in this field.

SK hynix has developed PEB110 E1.S, a high-performance SSD for data centers, addressing the growing demand for NAND solutions in the AI era. The new SSD, applying PCIe Gen5 specifications, offers twice the performance and over 30% greater power efficiency than its predecessor. Key features include:

- Data transfer rates up to 32 GT/s
- SPDM technology for enhanced security
- Available in 2TB, 4TB, and 8TB capacities
- OCP version 2.5 compatibility

SK hynix plans to begin mass production in Q2 2025, pending customer qualification. This development aims to strengthen SK hynix's position as the leading global AI memory provider in the expanding data center SSD market.

SK hynix has developed the industry's first 16Gb DDR5 using its 1c node, the sixth generation of the 10nm process. This breakthrough marks the beginning of extreme scaling closer to 10nm in memory process technology. The company achieved this by extending the platform of its industry-leading 1b technology.

Key improvements include:

• Enhanced cost competitiveness through new material adoption and EUV process optimization
• 11% improvement in operating speed to 8Gbps
• 9% improvement in power efficiency
• Potential 30% reduction in data center electricity costs

SK hynix plans to begin mass production within the year, with volume shipment expected in 2025. The company aims to apply this technology to next-generation products like HBM, LPDDR6, and GDDR7.

Gauss Labs has released Panoptes VM 2.0, an upgraded AI-based virtual metrology solution for semiconductor manufacturing. This new version introduces Multi-Step Modeling, Operation-Group Modeling, and Automatic Model Selection features, significantly improving prediction accuracy and usability. SK hynix, which has been using Panoptes VM 1.0 since December 2022, plans to expand its application to include the etching process in addition to thin film deposition. The solution has already helped SK hynix improve process variability by approximately 29% and enhance yield rates. Gauss Labs, founded in 2020 and headquartered in Silicon Valley, aims to revolutionize manufacturing with AI and expand its presence in the global industrial AI market.