SK Hynix, US Big Tech's 'AI Boom' Drives 2.6x Sales Surge... HBM Effect Shines

SK Hynix achieved record-breaking results in the U.S. market, driven by the expanding demand for artificial intelligence (AI) semiconductors from major U.S. big tech companies. More than half of last year's total sales came from the U.S., and this year, the company plans to accelerate performance growth by further expanding the supply of high-bandwidth memory (HBM).

According to data disclosed by SK Hynix on the 4th, last year, SK Hynix's U.S. sales subsidiary (SK Hynix America) recorded sales of 33.193 trillion KRW, more than doubling compared to the previous year. After the semiconductor industry faced difficulties due to the global economic downturn in 2022, the market began to recover in the second half of 2023, leading to a surge in AI semiconductor demand centered on U.S. big tech companies. The U.S. market has become a key driver of SK Hynix's performance growth, accounting for nearly half of last year's total sales (66.193 trillion KRW).

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The sharp increase in U.S. sales is because next-generation semiconductors such as high-bandwidth memory (HBM), enterprise solid-state drives (SSD), and 5th generation ultra-high-speed data transfer memory (DDR5), which SK Hynix focuses on, have become essential components for big tech's AI data center expansion. In the fourth quarter of last year, HBM accounted for more than 40% of SK Hynix's DRAM sales.

The company has already sold all of this year's supply, and especially plans to significantly increase the supply of next-generation products HBM3 and HBM3E starting from the first half of the year. With growing customer demand, HBM sales this year are expected to more than double compared to the previous year.

SK Hynix recently strengthened its local sales by appointing Vice President Ryu Seong-su, who has led the HBM business division, as the new head of the U.S. subsidiary. Vice President Ryu has been instrumental in fostering partnerships with U.S. big tech companies such as Nvidia, and is expected to further expand sales to customers within the U.S.

Meanwhile, SK Hynix recorded its highest-ever performance last year with sales of 66.193 trillion KRW and operating profit of 23.4673 trillion KRW. As the global semiconductor market enters an upswing phase due to the growth of the AI market, SK Hynix's performance growth trend is expected to continue.

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