AI Memory Chip Demand Might Boost SK Hynix’s Market Value in 3 Years – CEO

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AI Memory Chip Demand Might Boost SK Hynix's Market Value in 3 Years – CEO
AI Memory Chip Demand Might Boost SK Hynix's Market Value in 3 Years – CEO

SK Hynix of South Korea may see its market value rise to 200 trillion won ($152 billion) in three years as a result of its memory chips.

South Korea’s SK Hynix might witness its market value increase in three years to 200 trillion won ($152 billion) thanks to its memory chips, particularly for artificial intelligence, and by maximizing investment efficiency, according to the CEO.

Memory will become increasingly vital as generative AI becomes more ubiquitous, CEO Kwak Noh-Jung told reporters at the CES 2024 tech show in Las Vegas.

Customers’ demands for memory are broadening as AI systems evolve, he says.

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

SK Hynix was ahead of competitors in producing the newest high-bandwidth memory (HBM) processors utilized in the rapidly growing field of generative AI, securing Nvidia as a client.

The HBM3 chips can feed more data into generative AI circuits, allowing them to compute at rapid speeds.

With competitors Samsung Electronics and Micron developing their own versions of the next generation, known as HBM3E, SK Hynix has concentrated its internal HBM capabilities to stay ahead, according to Kwak.

When asked when SK Hynix’s production cuts may end, Kwak stated “changes need to be made in the first quarter” for DRAM chips used in tech gadgets, indicating an increase in output, but for NAND flash chips used to store data, the company’s production chipmaker plans to respond to market conditions after mid-year.

Memory chip manufacturers such as SK Hynix and Samsung have been cutting production drastically since early last year in order to weather the biggest industry downturn in decades, as soaring inflation has reduced demand for chip-enabled devices.

However, throughout the fourth quarter, industry leader Samsung purchased more silicon wafers—the building blocks for semiconductors—signifying that it was preparing to ramp up production as memory chip prices recovered.

In the afternoon session, SK Hynix rose 1.2%, giving it a market value of 100.1 trillion won. The broader market fell by 0.1%.

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