SK Hynix Reports Q1 2023 Net Loss Due to Low Demand and Falling Prices, Plans to Focus on High-Performance DRAM and NAND for AI Applications

SK hynix, a leading memory semiconductor company, released its financial report for the first quarter of the 2023 fiscal year, ending on March 31, 2023. The company recorded a combined revenue of KRW 50.881 trillion, with an operating loss of KRW 34.023 trillion and a net loss of KRW 25.855 trillion. The operating loss rate and net loss rate were 67% and 51%, respectively.

The company attributed the decline in revenue and increased operating loss to the continuous sluggishness in the memory semiconductor market due to weak demand and declining product prices. However, SK hynix expects sales to gradually increase from the first quarter and anticipates a recovery in performance in the second quarter. The company predicts that the market environment will improve in the second half of the year as the inventory of customers from the first quarter declines and the reduction in memory production by suppliers leads to inventory clearance.

SK hynix plans to focus on sales of high-performance DRAM such as DDR5 server DRAM and HBM, SSDs using 176-layer NAND, and uMCP products to boost revenue. The company will continue to invest in the latest storage memory products needed for industries that will lead future market changes such as artificial intelligence. Additionally, SK hynix will invest in the production of higher-cost-competitive technologies such as 10-nanometer class 5th generation (1b) DRAM and 238-layer NAND flash to be prepared for the future market improvement and to quickly recover its business performance.

SK hynix's CFO, Yoo Hyun-jin, stated that the company's product lineup, including DDR5, LPDDR5, and HBM3, has the most competitive edge in the global market and will consolidate its leading position in the high-end market of the artificial intelligence era. He further added that although the memory market still faces difficulties, the market is expected to reach bottom soon, and the company will focus on enhancing profitability and investing in technology research and development to restore its corporate value.