SK Hynix Announces Financial Results for the First Quarter 2023
Today, SK Hynix announced its financial report for the first quarter of the fiscal year 2023, ending on March 31st, 2023. Due to the persistent downturn in the memory semiconductor market, weakened demand, and declining product prices, the company experienced a reduction in revenue and an increase in operating losses. SK Hynix anticipates the first quarter to be the nadir, with sales gradually increasing and second-quarter performance expected to improve.
The financial report revealed that SK Hynix’s revenue for the first quarter of the fiscal year 2023 amounted to KRW 50.881 trillion (approximately USD 38.04 billion), representing a year-on-year decrease of 58% and a quarter-on-quarter decrease of 34%. Operating losses reached KRW 34.023 trillion (approximately USD 25.43 billion), marking a shift from profit to loss compared to the same period last year, with a 79% reduction quarter-on-quarter. Net losses amounted to KRW 25.855 trillion (approximately USD 19.33 billion), also reflecting a shift from profit to loss compared to the same period last year, with a 25% decrease quarter-on-quarter. Additionally, the operating loss rate was 67%, and the net loss rate was 51%.
SK Hynix noted that as customer inventory shifted toward a declining trend in the first quarter, and memory production cuts beginning in the second quarter would reduce suppliers’ inventory, the market environment is expected to improve in the second half of the year. Furthermore, with the expansion of the server market tailored to artificial intelligence applications such as ChatGPT, and an increase in clients adopting high-capacity memory, the market will experience a positive impact. In response, SK Hynix has decided to focus on sales of high-performance DRAMs like DDR5 server DRAM and HBM, SSDs employing 176-layer NAND, and uMCP products to bolster operating revenue.
SK Hynix’s CFO, Kim Woohyun, stated that products such as DDR5, LPDDR5, and HBM3 are witnessing a growing demand trend this year. Centered on these products, SK Hynix will continue to consolidate its leadership position in the high-end market of the artificial intelligence era.