SK hynix Inc. CEO Kwak Noh-jung delivers a speech during a press conference for CES 2024 at Mandalay Bay in Las Vegas on Jan. 8, 2024, in this photo provided by the company. (Image courtesy of Yonhap)
LAS VEGAS, Jan. 8 (Korea Bizwire) — SK hynix Inc., the world’s second-largest maker of memory chips, on Monday announced its commitment to spearheading the technological revolution led by artificial intelligence (AI) through its customized high-performance memory solutions.
In a press conference ahead of CES 2024 in Las Vegas, the company’s CEO Kwak Noh-jung emphasized the increasing importance of memory chips in the era of widespread generative AI.
“As generative AI becomes more common, memory chips will become more important,” he said. “SK hynix is leading the ‘Memory Centric AI Everywhere’ era by providing products based on the world’s best technology to the ICT industry.”
He said SK hynix’s strategic vision, labeled “Memory Centric,” envisions a future where memory products play a pivotal role in ICT devices.
The focus will be on SK hynix’s signature high bandwidth memory (HBM) products, with the latest addition being the HBM3E chips, recognized as the world’s best-performing memory product. Mass production of HBM3E is scheduled to begin in the first half of 2024.
This photo provided by SK hynix Inc. shows the venue for the company’s press conference for CES 2024 at Mandalay Bay in Las Vegas on Jan. 8, 2024. (Image courtesy of Yonhap)
Highlighting its diverse product lineup, SK hynix also showcased high-capacity through-silicon-via (TSV) dual in-line memory module (DIMM) semiconductors for servers; the world’s fastest mobile memory chip, LPDDR5T; and high-performance memory DIMM.
“As AI systems evolves rapidly, customers’ memory requirements are diversifying,” said Kwak. “To meet this demand, we are introducing a ‘Custom Memory Platform’ to provide specialized AI memory solutions for each customer.”
To solidify its focus on high-demand premium chips, SK hynix established the AI Infra unit last year, specifically tasked with the AI chip-related business.
The move came as recovering demand for high-performance products, like its AI memory HBM3E chips, has contributed to narrowing its operating deficit in the third quarter.
The company posted operating losses of 1.79 trillion won (US$1.32 billion) for the fourth consecutive quarter in the third quarter, compared with a profit of 1.67 trillion won a year ago, due to the protracted economic slowdown.
With an increase in preorders for its highly customizable HBM3E chips, SK hynix is anticipated to swing to a net profit for the first quarter of 2024.
“We’ve asked for an upfront payment from our customers,” said Kim Juseon, also known as Justin Kim, who heads the new AI Infra unit. “We are in talks on prices with customers, and we are optimistic that the outcome will significantly improve (our balance sheet).”
At the same time, SK hynix said it plans to adjust its production timetable to meet the rising demand for traditional memory semiconductors, including DRAM and NAND flash memory chips.
“We’ve reduced production of DRAM and NAND flash memories,” CEO Kwak said. “Demand for DRAM has shown some signs of a turnaround recently, and we will increase production of high-demand models first, while we will deal with the NAND market product by product, as it is making a slower rebound.”
In navigating exceptional macroeconomic and geopolitical situations, Kwak sees an opportunity for SK hynix to emerge as a leader in the AI-led technological revolution.
He emphasized SK hynix has secured validated end-user (VEU) status from the U.S. government, reducing uncertainties and providing the company with more time to review its China business.
The VEU program allows the shipment of semiconductor equipment to China despite Washington’s broader restrictions.
(Yonhap)
