SK Hynix, a leading memory chip manufacturer, has unveiled its financial results for the second quarter of the fiscal year 2024, ending June 30, 2024. The company posted a combined revenue of 16.4233 trillion KRW, an operating profit of 5.4685 trillion KRW, and a net profit of 4.12 trillion KRW. The operating profit margin stood at 33%, and the net profit margin was 25%.

This quarter's revenue has set a new record, significantly surpassing the previous high of 13.8110 trillion KRW achieved in Q2 of 2022. The operating profit marks a return to the 5 trillion KRW level for the first time since the semiconductor boom in 2018.

The company attributed the strong performance to increased sales of high-value products such as HBM3E and server DRAM, which have seen their sales share expand since mass production began in March of this year. Notably, HBM sales experienced an over 80% increase quarter-on-quarter and a staggering 250% increase year-on-year.

In the NAND flash memory segment, sales were primarily driven by the growth in eSSD and mobile products, with eSSD sales showing a continuous rapid growth trend, up approximately 50% quarter-on-quarter. SK Hynix highlighted that the average selling price of NAND flash memory products has been on an upward trajectory since the fourth quarter of last year, achieving profitability for two consecutive quarters.

Looking ahead, SK Hynix anticipates continued growth in demand for memory solutions catering to AI servers, with new high-performance memory products for PCs and mobile devices slated for release in the second half of the year. The company has already provided samples of its 12-layer HBM3E to key customers, with mass production expected to commence in the third quarter, reinforcing its leadership in the HBM market.

Furthermore, SK Hynix remains the sole provider of the highest-capacity 256GB DDR5 DRAM for servers and plans to launch 32Gb DDR5 DRAM and MCRDIMM products for high-performance computing in the second half of the year, thereby maintaining its competitive edge.

In response to the expanding demand for AI-oriented memory, construction of the M15X plant in Cheongju, South Korea, is underway, targeting mass production to begin in the second half of next year. Additionally, the first factory in theLongjin Semiconductor Cluster is set to commence construction in March next year, with completion scheduled for May 2027.

Despite an expected increase in CAPEX for the year, SK Hynix remains committed to a prudent investment strategy, focusing on customer demand and profitability while ensuring financial stability.

CFO Kim Woo-Jin stated, "In line with our profit-oriented investment approach, we have made necessary investments over the past two quarters, reducing our debt by 4.3 trillion KRW compared to the previous quarter. With a solid financial structure, we will continue to invest in cutting-edge engineering and high-performance product development, further solidifying our position as a leader in the AI memory market."