Monday, June 17, 2024
PR Newswire Area

SK hynix Reports Second Quarter 2023 Financial Results

  • Revenue at 7.306 trillion won, operating loss at 2.882 trillion won, net loss at 2.988 trillion won
  • Revenue rises; operating loss narrows on increased sales of premium products such as HBM3, DDR5
  • “Memory industry in recovery phase…We aim to accelerate earnings improvement by strengthening competitiveness in AI memory market”

SEOUL, South Korea, July 26, 2023 /PRNewswire/ — SK hynix Inc. (or “the company”, today reported financial results for the second quarter of 2023. The company recorded revenue of 7.306 trillion won, operating loss of 2.882 trillion won (with operating margin of negative 39%), and net loss of 2.988 trillion won (with net margin of negative 41%) for the three-month period ended June 30, 2023. 

“Amid an expansion in generative artificial intelligence (AI) market, which has largely been centered on ChatGPT, demand for AI server memory has increased rapidly,” the company said. “As a result, sales of premium products such as HBM3 and DDR5 increased, leading to a 44% sequential increase in revenue for the second quarter, while operating loss narrowed by 15%.” 

According to SK hynix, sales of both DRAM and NAND products increased in the second quarter, with higher average selling price (ASP) of DRAM largely contributing to revenue growth. Although the price for general DRAM products such as DDR4 continued to decline on sluggish PC and smartphone demands, DRAM blended ASP rose in the quarter, offset by increased sales in high-end products used for AI servers.

Moreover, lower inventory valuation loss, as well as the company’s ongoing cost reduction efforts, helped reduce operating loss.

* Operating margin in 1H: 1Q23 -67% → 2Q23 -39%

At the quarterly earnings conference call held today, the company said the demand for AI memory will continue to stay robust, and that a clearer effect of production reduction by memory companies can be seen.

SK hynix, thereby, aims to expand sales of high-end DRAM products, including HBM3, DDR5 and LPDDR5, as well as 176-layer based SSD products, which would help accelerate earnings improvement.

The company also announced that it will improve the quality and yields of 1b-nanometer, the fifth generation of the 10nm process technology, DRAM and 238-layer NAND this year and expand the scale of mass production once the industry upturn is visible. But, given that the inventory levels of NAND is higher than DRAM, the company has decided to further reduce NAND production.

“The company’s stance on consolidated investment, which is to reduce that by at least 50% compared to 2022, remains unchanged, but with resources secured by management efficiency, we will lead future market growth,” said Kim Woohyun, Vice President and Chief Financial Officer (CFO) at SK hynix.

“Having passed the trough in the first quarter, the memory semiconductor market is seen to have entered the recovery phase,” Kim said. “SK hynix will strive to prop up earnings through its technological competitiveness in high-end products.”

■ 2Q23 Financial Results (K-IFRS)

Unit: Billion KRW

2023 2Q

2023 1Q


2022 2Q





44 %


-47 %

Operating Profit



15 %


(turn to loss)

Operating Profit Margin

-39 %

-67 %


30 %


Net Income



-16 %


(turn to loss)

※ Financial information of the earnings is based on K-IFRS

※ Please note that the financial results discussed herein are preliminary and speak only as of June 30, 2023. Readers should not assume that this information remains operative at a later time.

About SK hynix Inc.

SK hynix Inc., headquartered in Korea, is the world’s top tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), flash memory chips (“NAND flash”) and CMOS Image Sensors (“CIS”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about SK hynix is available at,