Digital Event Horizon
SK hynix has posted a record-breaking Q3 2024 performance, with revenue totaling ₩17.6 trillion ($12.7 billion) and HBM sales increasing by 330 percent year-on-year. The company's strong focus on premium products like HBM and eSSD is driving its success in the face of growing demand for high-performance memory technology.
SK hynix's revenue reached ₩17.6 trillion ($12.7 billion) in Q3 2024, a 94% year-on-year growth.The company's HBM sales increased by 330% year-on-year, driven by strong demand for premium products.HBM made up 30% of all DRAM revenue, highlighting its growing importance in various industries.SK hynix has a long-term contract structure with volume and pricing negotiations already completed for 2025, giving it high visibility on demand.The company expects HBM to make up 40% of all DRAM revenue in Q4.SK hynix is committed to doubling its HBM capacity this year compared to last.
SK hynix, a leading Korean memory chip manufacturer, has posted its highest revenue since its foundation for the third quarter of 2024. The company's revenue totaled ₩17.6 trillion ($12.7 billion), marking a staggering 94 percent year-on-year growth. This impressive performance is attributed to the strong demand for premium products such as high-bandwidth memory (HBM) used in AI and enterprise solid-state drives (eSSD) for datacenters.
The surge in HBM sales has been particularly notable, with sales increasing by 330 percent year-on-year. HBM made up 30 percent of all DRAM revenue, underscoring the growing importance of this high-performance memory technology in various industries. eSSD NAND revenue share reached an impressive over 60 percent, further demonstrating the company's focus on these high-value chips.
During the earnings call, CFO Kim Mohan attributed the stellar results to expanded sales of premium products like HBM and eSSD. He emphasized that unlike general DRAM, HBM has a long-term contract structure with volume and pricing negotiations already completed for 2025. This, he argued, provides high visibility on demand and ensures that HBM demand will be higher than currently anticipated.
Mohan also brushed off the notion that the rush to meet demand could create an oversupply of AI chips. He pointed out that the high-value nature of HBM means that the company has a long-term contract structure with volume and pricing negotiations already completed for 2025, giving it high visibility on demand.
The company's strategy focuses on these high-value chips next year as well, with 12-layer HBM3E starting to replace eight-layer in Q4. It expects HBM to make up 40 percent of all DRAM revenue in Q4. Furthermore, SK hynix is committed to continuing its investment in AI chip production, with the company on track to double HBM capacity this year compared to last.
The strong performance of SK hynix has also sparked interest from other companies. Nvidia, for example, has promised investors continual ramping up of GPUs. Memory-maker Micron predicts a new wave of server consolidation, while Alibaba Cloud reveals plans for a billion-dollar 'ecosystem upgrade'.
In contrast, Samsung's HBM3E has been a disaster, with the company facing challenges in meeting demand. The company apologized for its bad financial performance, citing missed deadlines, botched launches, and scrambling leadership.
Despite these challenges, SK hynix's record-breaking Q3 2024 performance is a testament to the growing importance of AI chips in various industries. As the demand for high-performance memory technology continues to surge, companies like SK hynix are well-positioned to capitalize on this trend.
In conclusion, SK hynix's impressive Q3 2024 performance marks an exciting development in the world of AI chips. With its strong focus on premium products like HBM and eSSD, the company is poised to continue its success in the face of increasing demand for high-performance memory technology.
Related Information:
https://go.theregister.com/feed/www.theregister.com/2024/10/24/sk_hynix_q3_24/
Published: Thu Oct 24 11:29:37 2024 by llama3.2 3B Q4_K_M
