SK Hynix Q3 Operating Loss of 1.792 Trillion KRW... DRAM Returns to Profit (Update)

Performance Improvement Centered on High-Value D-RAM Including HBM
Reduced Deficit by Over 1 Trillion Won Compared to Q2
"Will Increase Investment in High-Value Core Products"

SK Hynix reduced its operating loss by more than 1 trillion won compared to the previous quarter in the third quarter, recording an operating loss in the trillion-won range. As sales of high-value-added DRAM increased, the average selling price (ASP) also rose, turning the DRAM segment profitable for the first time in two quarters.

SK Hynix announced on the 26th that it recorded sales of 9.0662 trillion won in the third quarter. This is a 17% decrease compared to the same period last year but a 24% increase from the previous quarter. The operating loss in the third quarter was 1.792 trillion won, reducing the deficit by more than 1 trillion won compared to the previous quarter, with an operating loss margin of 20%. The net loss was 2.1847 trillion won.

SK Hynix pointed out that market demand has increased mainly for high-performance memory products, and performance has been continuously improving since the first quarter low point. They explained that sales of key products such as high-bandwidth memory (HBM)3 for artificial intelligence (AI), high-capacity double data rate (DDR)5, and high-performance mobile DRAM showed strong performance. In the third quarter, sales volumes of both DRAM and NAND flash increased. In particular, with the rise in DRAM ASP, the DRAM segment turned profitable in the third quarter for the first time in two quarters.

By product, DRAM shipments increased by about 20% compared to the second quarter, driven by strong sales of high-performance server products such as AI. ASP also rose by about 10%. NAND shipments also increased, centered on high-capacity mobile products and solid-state drives (SSD). DRAM, which returned to profitability, is expected to continue improving with the generative AI boom. NAND, which is still in deficit, is also showing signs of market improvement gradually. In fact, as the effect of memory suppliers' production cuts becomes visible in the second half of this year, memory purchase demand is being generated mainly by customers with reduced inventory. Product prices are also stabilizing.

SK Hynix stated that it will make every effort to continue the trend of improving overall business performance. The company plans to increase investment in high-value-added key products such as HBM, DDR5, and low-power double data rate (LPDDR)5 in line with the market recovery trend. The company plans to shift the process mainly to DRAM 10-nanometer 4th generation (1a) and 5th generation (1b) while expanding investment in HBM and through-silicon via (TSV). TSV is an advanced packaging technology that drills thousands of tiny holes in DRAM chips to connect electrodes.

Kim Woo-hyun, Vice President (CFO) of SK Hynix, said, "Going forward, we will create new markets different from before through products such as HBM and DDR5, where the company holds a global leading position," adding, "we will continue to strengthen our position as the number one supplier of high-performance premium memory."

This content was produced with the assistance of AI translation services.