Quarterly reporting by SK hynix showed that in the last three months this South Korean company has more than quintupled the production volume of HBM memory, which in its various variants is in demand in the segment of computing accelerators for artificial intelligence systems. This year SK hynix plans to at least double HBM production volumes.
This is announced by the management of SK hynix Business Koreasaid after announcing fourth quarter results. This year, the company plans to more than double the production volume of HBM chips compared to last year. Analysts estimate that operating profit will exceed $7.5 billion at the end of this year, largely due to high demand for computing accelerators with HBM memory. Considering the company generated $24.5 billion in revenue for all of last year, an operating profit of more than $7.5 billion this year would be a very respectable result. SK hynix closed the last quarter with an operating profit for the first time in four previous periods, but the value did not exceed $259 million.
The management of SK hynix is convinced that the boom in artificial intelligence systems will make the memory market grow faster than in 2018. This year, the memory market will definitely grow, company representatives are convinced. Already in the last quarter, some SK hynix customers began to increase their order volume as they expected a further increase in memory prices and hoped to now be able to purchase them at more attractive conditions. It is significant that storage requirements also began to grow in the PC and smartphone segment. According to the management of SK hynix, supply and demand in the DRAM market will reach equilibrium in the current half of the year; this situation will be reached in the NAND market in the second half of the year.
SK hynix set a record operating profit in 2018, generating more than $15 billion during the period. The company is expected to post operating profits of $7.5 billion this year, rising to $11.2 billion by the end of next year. In anticipation of such dynamics, SK Hynix will more than double the volume of HBM memory production this year. Year. By the way, its competitor Samsung Electronics wants to do roughly the same thing.