South Korean chipmaker SK hynix Inc. posted profits in the fourth quarter of 2023, driven by increased sales of high-performance products such as DDR5 and high-bandwidth memory (HBM). This marks a significant turnaround from a year-long deficit that began in the fourth quarter of 2022.

According to the company’s regulatory filing on Thursday, the chipmaker hit 346 billion won ($258.5 million) in operating profits in the fourth quarter of 2023, marking a profit compared to the same period a year earlier when it recorded an operating loss of 1.91 trillion won.

The fourth-quarter figure surpassed the market estimate of 60.3 billion won, as compiled by Yonhap Infomax, by 473.7 percent. This turnaround to profitability comes after SK hynix posted deficits for five consecutive quarters starting from the fourth quarter of 2022, with the cumulative deficit amounting to 10 trillion during this period.

Fourth-quarter sales totaled 11.3 trillion won and the net loss stood at 1.38 trillion won, with a net loss rate of 12 percent.

“Our sustained focus on profitability-driven management has finally led to fruitful outcomes,” the chipmaker said, citing increased demand for artificial intelligence servers and mobile products, alongside a rise in the average selling prices (ASPs) for memory chips in the fourth quarter of 2023.

On an annual basis, the company’s operating losses for 2023 are estimated at 7.73 trillion won, a reversal from the previous year’s operating profits of 6.81 trillion, with an operating loss rate of 24 percent.

Annual sales decreased by 26.6 percent compared to the previous year to total 32.77 trillion won, and the net loss for the year was 9.14 trillion won with a net loss rate of 28 percent.

DDR5 and HBM3 sales for the past year increased more than fourfold and fivefold respectively, from the previous year, according to the company. But it noted a focus on efficiency in investment and costs in the NAND segment, where the industry rebound was somewhat delayed.

By Pulse

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