Korea's semiconductor giant, SK hynix Inc., disclosed its financial results for Q3 2023, ending September 30. The company posted revenues of 9.066 trillion won, with an operating loss of 1.792 trillion won and net losses tallying 2.185 trillion won. The corresponding operating and net margins were -20% and -24%, respectively.
Signaling a rebound from Q1, the company is observing a consistent recovery, primarily driven by increasing demand for high-performance memory chips. SK hynix highlighted a 24% revenue growth and a 38% reduction in operating losses compared to the preceding quarter. This progress was attributed to robust demand for flagship mobile products, HBM3, essential for AI applications, and the high-capacity DDR5. Notably, the DRAM segment, after two quarters of losses, showcased a positive outlook.
Key insights revealed that growth was spurred by elevated DRAM and NAND shipments coupled with a hike in average selling prices. Specifically, DRAM shipments rose by 20% due to robust sales of high-end products for server applications, especially AI, with the average selling price witnessing a 10% increase. Simultaneously, NAND shipments climbed, led primarily by high-capacity mobile and solid state drive products.
In response to the evolving market dynamics, SK hynix aims to elevate investments in top-tier products, notably HBM, DDR5, and LPDDR5. They also intend to enhance the production share from the advanced 1anm and 1bnm processes while bolstering investments in HBM and TSV technology.
Kim Woohyun, the CFO of SK hynix, commented, "Our firm foothold as the global leader for products like HBM and DDR5 propels us towards new market territories unlike before. Our focus remains on strengthening our stature as the premier provider of high-caliber, premium memory products."
In a related development, Reuters reported that SK hynix perceives the AI surge as a potential driving force behind future chip profits after a contained Q3 loss. The global memory chip industry, which has experienced a prolonged downturn, is slowly regaining traction. Some market experts project SK hynix's transition into profitability in the forthcoming quarter.
*The financial data mentioned is based on K-IFRS and is provisional as of September 30, 2023.