SK Hynix HBM3E 16-Layer Showcased at CES (Image provided by SK Hynix)
SEOUL, March 4 (Korea Bizwire) — SK Hynix saw a major surge in U.S. sales in 2024, fueled by booming demand for high-bandwidth memory (HBM) and AI-driven enterprise storage solutions, reinforcing the company’s position as a key supplier to American tech giants.
According to SK Hynix’s latest financial disclosure on March 4, its U.S. subsidiary, SK Hynix America, generated 33.49 trillion won ($23.1 billion) in revenue and 1.05 trillion won ($726 million) in net profit in 2024. This represents a 2.6-fold increase from its 2023 revenue of 12.54 trillion won ($8.65 billion).
The explosive growth reflects the global semiconductor industry’s transition from a downturn to a recovery phase in 2023–2024, coupled with a surge in AI-driven memory demand from big tech companies for products like HBM, enterprise SSDs, and DDR5.
At NVIDIA’s annual developer conference, GTC 2024, held on March 18 (local time) at the San Jose Convention Center in California, SK Hynix showcased its supply of HBM3 to NVIDIA. (Yonhap)
U.S. Market Drives SK Hynix’s Growth
The United States remains SK Hynix’s largest revenue source, accounting for more than half of the company’s total sales. By the third quarter of 2024, U.S. sales reached 27.3 trillion won ($18.8 billion), or 58% of SK Hynix’s total revenue of 46.42 trillion won ($32.0 billion).
“Revenue is allocated based on customer location, meaning that even if NVIDIA imports HBM from Taiwan to build AI accelerators, the revenue is recorded under the U.S. market,” an industry official explained. “Unlike China, where demand is concentrated in mobile memory, the U.S. market is dominated by big tech firms purchasing server-grade AI memory, driving SK Hynix’s U.S. sales higher.”
An employee working at a semiconductor fab (factory) (Image courtesy of SK hynix)
HBM Demand and Expansion Plans
SK Hynix has already sold out its HBM inventory for 2025 and is ramping up production of its fifth-generation HBM3E 12-layer chips. The company plans to roll out 16-layer HBM3E in the first half of the year and introduce custom sixth-generation HBM4 in the second half to further solidify its market leadership.
Customer demand is growing as well. During its latest earnings call, SK Hynix projected that HBM revenue will more than double in 2025 due to strong orders from clients. The company also noted increasing demand from ASIC-based AI chipmakers, signaling a broader customer base beyond NVIDIA.
ASIC (Application-Specific Integrated Circuit) chips are gaining traction among big tech players like OpenAI and Broadcom, as companies seek alternatives to reduce their reliance on NVIDIA’s dominance in AI accelerators.
Samsung Electronics and SK Hynix are actively working on securing leadership in the HBM market while also maintaining a strategy of reduced output in the sluggish NAND flash memory sector. (Image courtesy of Yonhap)
Strengthening U.S. Operations
SK Hynix America is expected to expand its sales and customer engagement efforts with major U.S. tech firms. The subsidiary plays a crucial role in HBM validation and mass production, facilitating direct communication between SK Hynix and its clients.
To reinforce its presence, SK Hynix has appointed Ryu Seong-su, former head of HBM Business, as the new president of its U.S. subsidiary. Ryu has played a key role in securing partnerships with major tech firms, including NVIDIA, and his leadership is expected to strengthen SK Hynix’s relationships with global AI players.
Closing the Gap with Samsung
SK Hynix’s expanding HBM3E shipments have also helped it gain ground in the global DRAM market. By the fourth quarter of 2024, SK Hynix held a 36.6% market share, closing in on Samsung Electronics’ 39.3%.
The company recorded total revenue of 66.19 trillion won ($45.6 billion) and an operating profit of 23.47 trillion won ($16.2 billion) in 2024, marking its highest-ever annual earnings. Notably, HBM accounted for more than 40% of SK Hynix’s total DRAM sales in Q4 2024, underscoring its strategic importance in the company’s growth trajectory.
As SK Hynix accelerates its push into the AI memory sector, its aggressive expansion in the U.S. and continued innovation in HBM technology position it as a formidable challenger to industry leader Samsung.
Kevin Lee (kevinlee@koreabizwire.com)
