[News] SK Hynix Aims for Doubling Market Value in 3 Years, Considering Alteration On its Production Cut Plan for Q1

2024-01-10 Semiconductors editor

SK Hynix CEO Kwak Noh-Jung expressed optimism at the Consumer Electronics Show (CES) in the United States, stating that artificial intelligence (AI) chips would propel SK Hynix’s market value to double within three years, reaching KRW 200 trillion (approximately USD 152 billion).

Kwak also revealed plans to adjust the DRAM production reduction policy in the first quarter, while anticipating changes in NAND Flash production strategy in the latter half of the year.

At the CES exhibition in Las Vegas, Kwak emphasized that generative AI is gradually becoming widespread, and memories are increasingly crucial. With the advancement of AI systems, customer demands for memory will become more diverse. Kwak highlighted the development of a platform to offer customized options for various customers.

“If we prepare the products we are currently producing well, pay attention to maximising investment efficiency and maintaining financial soundness, I think we can attempt to double the current market capitalisation of 100 trillion won to 200 trillion won within three years,” Kwak said.

Kwak further stated in the CES: “There are only three HBM providers in the market. What I can say for sure is that SK Hynix is a clear leader in the HBM space.”

For the current HBM market, as reported by TrendForce earlier, SK hynix holds the lead in HBM3 production, serving as the principal supplier for NVIDIA’s server GPUs.

Samsung, on the other hand, is focusing on satisfying orders from other CSPs. The gap in market share between Samsung and SK hynix is expected to narrow significantly in 2023 due to an increasing number of orders for Samsung from CSPs. Both firms are predicted to command similar shares in the HBM market sometime between 2023 to 2024—collectively occupying around 95%.

Meanwhile, when asked if SK Hynix would ease its current chip production reduction policy, Kwak responded that the company’s policies are flexible and will be adjusted based on different product categories.

He mentioned that SK Hynix might change its DRAM production reduction policy in the first quarter, while adjustments for NAND Flash are anticipated to take place in the latter half of the year.

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(Photo credit: SK Hynix)

Please note that this article cites information from Reuters and Bloomberg