SK hynix Reports Third Quarter 2023 Financial Results
- Revenues grew 24%, operating losses narrowed 38% compared to the previous quarter. Strong demand for high-performance mobile flagship products and HBM3 contributed to the growth. Shipments of DRAM increased 20% with a 10% rise in average selling price. SK hynix expects a turnaround in the DRAM business and a steady recovery in the NAND space. Semiconductor prices are starting to stabilize.
- Operating and net margins were negative at 20% and 24% respectively. The company recorded net losses of 2.185 trillion won. The financial results speak only as of September 30, 2023, and may not remain operative at a later time.
- Technical prowess, competitive products help expand revenues, narrow operating losses
- DRAM turns around from two quarters of losses, helped by brisk sales of premium products
- "Company to open up new markets with advanced technology as key player of future AI infrastructure"
After bottoming out in the first quarter, the business has been on a steady recovery track, helped by growing demand for products such as high-performance memory chips, the company said.
"Revenues grew
SK hynix attributed the growth in sales to increased shipments of both DRAM and NAND and a rise in the average selling price.
By products, shipments of DRAM increased
Following a turnaround, an improvement in the DRAM business is forecast to gain speed, backed by popularity of the generative AI technology, while there are looming signs of a steady recovery in the NAND space as well.
With the effect of the production reduction by global memory providers starting to be seen and customers, following efforts to reduce inventories, placing new orders now, semiconductor prices are starting to stabilize, the company said.
To meet new demands, SK hynix plans to increase investments in high-value flagship products such as HBM, DDR5, and LPDDR5. The company will increase the share of the products manufactured from the 1anm and 1bnm, the fourth and the fifth generations of the 10nm process, respectively, while increasing investments in HBM and TSV*.
* TSV (Through Silicon Via): An interconnecting technology used in advanced packaging that links the upper and lower chips with electrode that vertically passes through thousands of fine holes on DRAM chips. |
Kim Woohyun, the chief financial officer at SK hynix, said that the company has been consolidating its position as the key player in the future AI infrastructure with its leadership in the high-performance memory market.
"Our strong position as the world's key provider of the products such as HBM and DDR5 will help us discover new markets differentiated from the past," Kim said. "We will work toward strengthening our position as the world's best provider of the high-performance, premium memory products."
3Q23 Financial Results (K-IFRS)
Unit: Billion KRW | |||||
3Q23 | 2Q23 | QoQ | 3Q22 | YoY | |
Revenue | 9,066.2 | 7,305.9 | 24 % | 10,982.9 | -17 % |
Operating Profit | -1,792 | -2,882.1 | 38 % | 1,660.5 | (turn to loss) |
Operating Profit Margin | -20 % | -39 % | 15 % | - | |
Net Income | -2,184.7 | -2,987.9 | 27 % | 1,107.6 | (turn to loss) |
※ Financial information of the earnings is based on K-IFRS
※ Please note that the financial results discussed herein are preliminary and speak only as of September 30, 2023. Readers should not assume that this information remains operative at a later time.
About SK hynix Inc.
SK hynix Inc., headquartered in
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SOURCE SK hynix Inc.
FAQ
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