SK Hynix is back on track with a net profit in the first quarter of the year, turning the tide after facing five consecutive quarters of losses. The South Korean memory-chip maker attributes this success to the booming demand for advanced and high-end memory chips driven by the artificial-intelligence (AI) industry.
The company reported a net profit of 1.917 trillion won ($1.39 billion) for the quarter, a significant improvement from the net loss of KRW2.585 trillion in the same period last year. Revenue soared to a record KRW12.43 trillion, with an operating profit of KRW2.886 trillion.
SK Hynix’s strong performance is largely due to the increased sales of its High Bandwidth Memory (HBM) and other advanced chips used in AI data servers. The NAND-chip business also saw a profit surge, thanks to robust sales of premium products amid higher prices in the market.
Looking ahead, SK Hynix anticipates a continued recovery in the memory-chip market throughout the year, driven by the rising demand for AI chips. The company’s market capitalization has doubled in the past year to nearly $100 billion, reflecting investors’ confidence in its growth potential.
To meet the escalating demand for advanced memory chips, SK Hynix plans to invest $14.56 billion in expanding its semiconductor production capacity in South Korea. A portion of this investment will go towards building a new chip-fabrication plant, with completion expected by November 2025.
The company is also making moves in the U.S. market by constructing a $3.87 billion AI chip-packaging facility in Indiana. Additionally, SK Hynix is collaborating with Taiwan’s TSMC to develop new HBM4 products, further solidifying its position in the competitive semiconductor industry.
As the AI boom continues to drive demand for cutting-edge memory solutions, SK Hynix is well-positioned to capitalize on this trend and further solidify its market presence.
