SK Hynix's AI-Related Memory Chips Sold Out for Year
By Kwanwoo Jun
SK Hynix said its high bandwidth memory products were sold out for this year and almost fully booked for 2025 due to brisk demand for artificial-intelligence chips.
The South Korea-based HBM chip supplier said in a statement Thursday it plans to mass-produce its most advanced product, the 12-stack HBM3E chip, in the third quarter of 2024.
Samples of these chips will be made available to clients in May, ahead of mass production to meet the growing demand, SK Hynix said.
HBM and other AI chips are likely to account for 61% of SK Hynix's total memory chip revenue in 2028, up from around 5% in 2023, it added.
SK Hynix, the world's second-largest memory-chip maker, last week said it swung to a first-quarter net profit after five straight quarters of losses and it expects the overall memory market to recover this year on demand for AI chips.
To meet the strong demand for advanced memory chips, SK Hynix plans to spend an additional $14.56 billion to expand its semiconductor production capacity in South Korea.
The Korean company is also expanding in the U.S., with plans to build a $3.87 billion AI chip-packaging facility in Indiana. It is also partnering with Taiwan's TSMC, the world's largest contract chip maker, to develop new HBM4 products.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
May 02, 2024 03:53 ET (07:53 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
After Earnings, Is Lowe’s Stock a Buy, Sell, or Fairly Valued?
-
5 Stocks With the Largest Fair Value Estimate Cuts After Q1 Earnings
-
10 Stocks With the Largest Fair Value Estimate Increases After Q1 Earnings
-
Markets Brief: Inflation Back in the Spotlight
-
AI Is Booming, but Consumer Spending Is Slowing. Which Will Prevail in the Stock Market?
-
What’s Happening In the Markets This Week
-
Is the Era of Volatility-Suppressing Policies Possibly Over?
-
5 Undervalued Stocks That Crushed Earnings for Q1 2024
-
Chewy Earnings: Market Likes Repurchase Program and Profit Improvements
-
This 5-Star Stock With a Dividend Yield That Tops 4% Is a Buy
-
After Earnings, Is Target Stock a Buy, Sell, or Fairly Valued?
-
Obesity Drug Stocks: Where to Invest Now
-
How to Invest Like Warren Buffett
-
DuPont Split Gives Investors Better Choices
-
2 Wide-Moat Stocks to Consider
-
Live Nation: Breakup Sought by Department of Justice Probably Wouldn’t Affect Fair Value Much