SK Hynix began supplying HBM chips to Nvidia in 2022. Image: SK Hynix
South Korean memory maker SK Hynix returned to profitability in the first quarter after last year’s crisis with great success backed by the rise of AI.
The company said Thursday that it posted 2.88 trillion won in operating profit in the January-March quarter, beating South Korean analysts’ estimates by about 40%. Its revenue also rose 144.3% to 12.42 trillion won, reflecting strong sales of memory chips across the board.
SK Hynix is Nvidia’s primary supplier of high-bandwidth memory (HBM) for its AI chip platform. HBM is composed of multiple DRAM dies stacked vertically, providing the high speed needed in AI chips.
The popularity of artificial intelligence services like ChatGPT is driving demand for server memory chips to support them. Fellow countryman Samsung is also seeing a boom in demand as it expects its profits to rise 900% in the same quarter.
SK Hynix said it was increasing sales of AI server products while also seeing strong demand for premium embedded solid-state drives, allowing its NAND business to return to profitability.
SK Hynix said it plans to gain more customers for HBM3E, which went into production in March, while also focusing on other high-end DRAM products, such as DDR5, aimed at servers.
Meanwhile, the company announced a day earlier that it plans to spend more than 20 trillion won ($14.5 billion) to build a new chip production facility, called M15X, dedicated to DRAM production in Cheongju, South Korea. which will begin mass production in 2025.
