Shulou(Shulou.com)11/24 Report--

CTOnews.com July 26 news, South Korean semiconductor company SK Hynix is now releasing the financial report for the second quarter of fiscal year 2023 ending June 30, 2023.

According to the financial report, the combined income of SK Hynix in the second quarter was 7.3059 trillion won (CTOnews.com Note: currently about 40.913 billion yuan), up 44% from the previous month, down 47% from the same period last year; the operating loss was 2.8821 trillion won (currently about 16.14 billion yuan), up 15% from profit to loss compared with the same period last year. The net loss was 2.9879 trillion won (currently about 16.732 billion yuan), down 16% from the previous month, turning from profit to loss compared with the same period last year. In the second quarter of fiscal year 2023, the operating loss rate was 39%, and the net loss rate was 41%.

"with the expansion of the ChatGPT-centric generative AI market, the demand for storage for AI servers has soared," explains SK Hynix. As a result, sales of high-end products such as HBM3 and DDR5 DRAM increased, with operating revenue up 44 per cent and operating loss down 15 per cent in the second quarter compared with the first quarter. "

SK Hynix said that sales of both DRAM and NAND increased significantly in the second quarter, especially the rise in the average price of DRAM compared with the previous quarter, which had a great impact on the increase in operating revenue.

It is said that although ordinary DRAM products such as DDR4 continue to reduce prices with the weakness of the PC and smartphone market, the overall ASP of DRAM has improved compared with the first quarter due to the increase in sales of high-priced, high-configuration products used for AI servers.

In addition, SK Hynix has reduced the loss of inventory valuation through continuous company-wide efforts to save costs, thus narrowing the operating loss.

"the strong demand for memory for AI will continue in the second half of this year, and the production reduction effect of semiconductor memory companies may gradually become apparent," the company said at the results presentation.

Therefore, SK Hynix intends to continuously improve sales performance in the future, focusing on memory for AI such as HBM3, high-performance DDR5 and LPDDR5 DRAM, and SSD based on 176layer NAND flash memory, so as to accelerate the improvement of performance in the second half of the year.

In addition, the company said that this year, it will improve the initial production rate and quality of the fifth generation 10nm (1b) DRAM and 238 layers of NAND flash memory, and quickly increase the proportion of mass production when the market conditions improve. However, the company believes that the de-storage speed of NAND flash memory is slower than that of DRAM, so it decides to expand the production reduction scale of NAND products.

Jin Youxian, vice president of SK Hynix Finance (CFO), said: "although the basic tone of the company's investment scale is more than 50% lower than the same period last year, the company will use the funds ensured through operational efficiency to continue to invest in expanding production capacity for the high-capacity DDR5 and HBM3 DRAM that dominate the market in the future."

Vice President Jin added: "the memory semiconductor market began to recover from the low point in the first quarter. The company will make efforts to quickly improve its performance based on the technological competitiveness of high-performance products."

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