We have met all the performance and speed standards for sixth-generation high bandwidth memory (HBM4) required by customers and secured mass production capability. SK hynix is proceeding without a hitch according to the internal plan for the HBM4 business.
Kwak Noh-jung, SK hynix president, said this to reporters on the 22nd ahead of the Semiconductor Day event at the Grand InterContinental Seoul Parnas in Gangnam District, Seoul. SK hynix said in Sept. that it completed the world's first HBM4 development and established a mass production system. SK hynix is said to be supplying final customer samples (CS) of HBM4 to Nvidia, its largest HBM customer, for testing.
Kwak also offered a positive outlook for next year's memory semiconductor market. In the chip industry, there is a view that demand for HBM next year will expand sharply, concentrating memory semiconductor corporations' production capacity on HBM and leading to a shortage of DRAM supply. For this reason, DRAM prices are expected to rise, significantly improving profitability. Likewise, in NAND flash memory, demand for enterprise solid-state drives (eSSD) is projected to increase with the growth of the AI industry.
He said, We don't think next year will be bad, adding, We are working hard so that we can carry the same level of hope into next year as this year. According to financial data firm FnGuide, SK hynix's operating profit forecast for this year is 4.03006 trillion won, about 70% higher than last year's 2.34673 trillion won. The operating profit forecast for next year is 5.56331 trillion won.
Regarding having achieved the market capitalization target of 200 trillion won declared at CES 2024, the world's largest IT and home appliance show held in Jan. last year, Kwak held back, saying, It would not be appropriate to comment on the share price at this point. However, he explained, As the AI industry develops, the importance of memory is growing, and if we keep meeting customer needs as we open the AI era, I believe corporate value will rise in tandem.
On the possibility of meeting with Nvidia CEO Jensen Huang, who will attend the Asia-Pacific Economic Cooperation (APEC) summit scheduled to be held in Gyeongju, North Gyeongsang, from Oct. 31 to Nov. 1, he avoided comment, saying, I have nothing to share at this time. Huang is expected to attend the CEO Summit, a side event of the APEC summit.
Meanwhile, Kwak received the Order of Industrial Service Merit, Gold Tower, in recognition of contributions including expanding exports through the development of high value-added memory. He said, I think the entire group provided a lot of support, and it was thanks to the hard work of SK hynix members.