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As
generative AI becomes more common, memory will become
increasingly important, CEO Kwak Noh-Jung told reporters at the
CES 2024 tech conference in Las Vegas.
As AI systems develop, customer demands for memory are
diversifying, he said.
"If we prepare the products we are currently producing well, pay
attention to maximising investment efficiency and maintaining
financial soundness, I think we can attempt to double the
current market capitalisation of 100 trillion won to 200
trillion won within three years," Kwak said.
SK Hynix was ahead of rivals in developing the latest in high
bandwidth memory (HBM) chips used in the fast-growing field of
generative AI, securing AI-chip leader Nvidia as a client.
The chips, known as HBM3, can feed more data into chips used for
generative AI, enabling them to compute at high speed.
With rivals Samsung Electronics and Micron having developed
their own versions of the next generation, called HBM3E, SK
Hynix has consolidated its internal HBM capabilities to stay
ahead, Kwak said.
As for when SK Hynix's production cuts might end, Kwak said
"changes need to be made in the first quarter" for DRAM chips
used in tech devices, signalling an increase in production,
while for NAND flash chips used to store data, the chipmaker
plans to respond to market conditions after mid-year.
Memory chip makers including SK Hynix and Samsung have engaged
in extensive production cuts since early last year to weather
the worst industry downturn in decades as high inflation dented
demand for gadgets containing chips.
However, during the fourth quarter industry No. 1 Samsung took
in more supply of silicon wafers - the building blocks for
semiconductors - signalling it was gearing up to increase
production as memory chip prices rebounded.
SK Hynix traded up 1.2% in afternoon trade, giving it a market
capitalisation of 100.1 trillion won. The wider market was down
0.1%.
($1 = 1,312.3400 won)
(Reporting by Joyce Lee; Editing by Sonali Paul)
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