SK Hynix recorded its steepest quarterly working loss in ten years for the primary quarter of 2023 however mentioned the worldwide reminiscence chip market is anticipated to start recovering within the second half of the yr.
The South Korean reminiscence chip maker on Wednesday reported an working lack of 3.4 trillion received for the primary quarter this yr, its second consecutive quarter of loss, after it recorded an working lack of 1.89 trillion received, within the prior quarter.
The worldwide financial slowdown that began final yr has soured calls for for shopper electronics and different gadgets that use chips. This has precipitated oversupply and chipmakers and their clients to have increased than optimum inventories which is inflicting chip costs to plummet. The worth drop for reminiscence chips started within the second half of 2022.
In response, SK Hynix was the primary reminiscence chipmaker to announce that it was decreasing its manufacturing output and spending. Final month, US competitor Micron, which reported a web lack of $2.3 billion in its newest fiscal quarter, mentioned it was decreasing its manufacturing output much more than it anticipated late final yr.
Earlier this month, Samsung, the world’s largest reminiscence chipmaker, additionally introduced that it’ll scale back manufacturing output by a “significant” quantity.
On Wednesday, SK Hynix with manufacturing lower by reminiscence chipmakers taking into impact, mentioned it expects stock throughout the market to enhance beginning within the second quarter with a gradual enhance in gross sales.
Propelled by this, market circumstances are anticipated to enhance from the second half of the yr, the South Korean chipmaker mentioned.
Demand for high-performance server chips will probably be pushed by the adoption of AI corresponding to ChatGPT, which in flip will enhance demand for high-capacity reminiscence merchandise, SK Hynix additionally famous. The corporate will provide its premium server DDR5 and excessive bandwidth reminiscence in addition to 176-layer NAND merchandise, whereas additionally focusing its spending on next-gen chips corresponding to extra superior 10nm node DRAM and 238-layer NAND to provide as soon as the market rebounds.
