SK Hynix Returns to Profitability on Strong AI Chip Demand

Company plans to 'grow into a total AI memory provider' in 2024, following a significant increase in sales of flagship products DDR5 and HBM3.

SK Hynix, the world's second-largest memory chip maker, has reported a surprise profit of 346 billion won ($259.4 million) for the October-December period, marking its first operating profit since the third quarter of 2022.
Strong demand for high-end memory chips used in artificial intelligence (AI) applications, particularly from AI-chip leader Nvidia, has driven the company's return to profitability.
Sales of the company's flagship products, DDR5 and HBM3, increased more than four and five times respectively last year.
Despite the positive Q4 results, SK Hynix still recorded a full-year loss of 9.1 trillion won due to a year-long industry downturn.
Looking ahead, SK Hynix aims to 'grow into a total AI memory provider' in 2024, with plans to commence mass production of HBM3E and continue development of its successor, HBM4.