[News Article] SK hynix aims to boost profits with advanced HBM chips
SK
hynix aims to boost profits with advanced HBM chips By
Jo He-rim, The Korea Herald - In the latest artificial intelligence boom, SK
hynix will boost sales of its high bandwidth memory, or HBM, a critical chip to
generative AI tools, to improve profitability, SK hynix Chief Executive Officer
Kwak Noh-jung said at a general shareholders meeting Wednesday. Concerning
the Wall Street Journal's report on SK hynix' plan to invest $4 billion to
build an advanced chip packaging facility in Indiana, Kwan said nothing has
been decided yet. "Even
if (the market) experiences severe downturn again, the company make its system
stable for sound business operation, by coming up with differentiated AI memory
solutions, such as the next-generation HBM," Kwak said at the general
shareholders meeting, held in the company headquarters in Icheon, Gyeonggi
Province. "The
proportion of HBM chip sales among the total DRAM sales will increase by
double-digits this year, and it will contribute to profitability." HBM
chips have come into the spotlight as a novel technology stacking DRAM chips
vertically to increase data processing speed for graphic processor units. HBM3
is currently widely used, but chipmakers are introducing the extended version,
HBM3E. While
the chip maker experienced losses in operation profit for four consecutive
quarters in the past, it was able to make a turnaround in the fourth quarter
last year, recording an operating profit of 345 billion won, seeing growth in
sales of advanced chips such as the HBM3. "Last
year, the price of DRAM products, which make up most of the company's sales,
dropped and the demand was low. HBM only took a single-digit share in
sales," Kwak said, elaborating on the reasons for the poor sales
performance last year. SK
hynix recently announced it has kicked off mass production of the
fifth-generation 8-stack HBM3E and has begun delivering the product to Nvidia,
faster than rivals Samsung Electronics and Micron Technology. The company also
plans to start mass-producing 12-stack HBM3E this year. For
this year's market prospects, Kwak forecast a rosy outlook. "Consumer
confidence is restoring, leading to growth in the demand for IT devices. The
competition in the global generative AI market getting fiercer and the demand
for AI memory chips is expected to surge," the CEO said. For
the company's NAND memory chip business, SK hynix will change its strategy from
focusing on market share to improving profitability this year. On
the company's plan to build an advanced chip packaging facility in the US, Kwak
said it is reviewing several regions, but nothing has been decided yet. “We
are reviewing (several regions in the US for the advanced chip packaging
facility), but we have not made a final decision. We will inform you when the
decision is made,” Kwak told reporters after the general shareholders meeting. According
to the WSJ, the chipmaker chose West Lafayette, Indiana, for its chip facility
for its nearby access to Purdue University, home of one of the US’ biggest
semiconductor and microelectronics engineering programs. The
envisioned facility is reportedly expected to create about 800 to 1,000 new
jobs, and operation could begin in 2028, the WSJ reported, citing people
familiar with the matter. It
would also be subject to the US CHIPS Act subsidy program aimed at boosting the
domestic chip manufacturing industry. The deadline for firms to apply with the
US Commerce Department for subsidies is April 12. Regarding
his recent trip to China, Kwak explained that it was a strategic move to check
business conditions there and policy changes. "Major
countries around the world like the US have presidential elections this year.
There is a possibility of change in the geopolitical environment depending on
the result of the elections, so we will be watching closely for changes in the
external environment." Kwak said. SK
hynix is the current leader in the HBM market, securing about 53 percent of
market volume, while Samsung takes about 38 percent, according to TrendForce, a
market tracker. US-based Micron Technology accounts for the remaining 9 percent
share. Source:
https://www.koreaherald.com/view.php?ud=20240327050666
2024.03.29
>
>
