Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
SK hynix aims to double market cap in 3 years with AI chips
SK hynix CEO Kwak Noh-jung speaks during a press conference at Mandalay Bay Convention Center in Las Vegas, Monday (local time). Courtesy of SK hynix
By Park Jae-hyuk
SK hynix unveiled the goal of doubling its market capitalization to 200 trillion won ($152 billion) within three years, based on the expectation that the growing demand for memory chips for artificial intelligence (AI) will enable the company to grow even more sustainably.
During a press conference in Las Vegas, Monday (local time), the chipmaker also hinted that it may resume full production of DRAM during the first quarter at the earliest and NAND in the latter half of this year. In addition, it dismissed concerns over any possible fallout from the U.S.-China chip war on its business.
“Demand for DRAM has shown some signs of a turnaround recently, and we will increase production of high-demand models first, while we will deal with the NAND market product by product, as it is making a slower rebound,” SK hynix CEO Kwak Noh-jung told reporters a day before the opening of CES 2024 in the U.S. state.
He also emphasized that SK hynix has secured validated end-user status from the U.S. government, reducing uncertainties and providing the company with more time to review its China business.
His remarks came after the semiconductor manufacturer introduced itself as the company that leads the era of “memory-centric AI everywhere.”
“The importance of memory will grow further as generative AI will become widespread,” Kwak said. “We will introduce a ‘custom memory platform’ to provide customized AI memory solutions as demand grows for diverse memory products.”
SK hynix also introduced its planned 120 trillion won investment in the construction of a new memory chip plant on a 4.15 million-square-meter site in Yongin, Gyeonggi Province, which will supply semiconductors to AI companies worldwide.
The chipmaker remained optimistic that its leadership in the high bandwidth memory (HBM) market will boost its earnings and stock price, as that type of memory chip is considered vital for AI.