Storage product prices are continuously rising, driven by the AI wave and the revival of demand. High-performance DRAM chip prices have also increased significantly. Supply chain insiders report that SK Hynix’s DRAM products, including LPDDR5, LPDDR4, and DDR5, have seen a price hike of 15-20%.
According to foreign media reports, supply chain insiders stated that prices of SK Hynix’s DRAM products have been increasing monthly since the fourth quarter of last year and have cumulatively risen by approximately 60-100% so far. This trend in storage prices is expected to ease only in the second half of the year.
SK Hynix released its Q1 financial report on April 25, announcing that Q1 revenue soared to KRW 12.42 trillion, up 144.3% year-on-year, marking the highest revenue for the same period in history. Operating profit reached KRW 2.88 trillion, exceeding the market’s expected KRW 1.8 trillion, and was the second-highest for the same month in history. In comparison to the KRW 3.4 trillion loss in the same period last year, this represents a dramatic turnaround. SK Hynix considers this a shift from a prolonged slump to a full recovery.
Looking ahead, SK Hynix stated that memory demand led by AI continues to grow, and demand for standard DRAM products will recover from the second half of the year. Therefore, the semiconductor memory market is expected to show stable growth this year.
Industry forecasts suggest that high-end products like HBM require greater capacity than standard DRAM products. As the production of high-end products increases, the supply of standard DRAM products will relatively decrease, potentially depleting suppliers’ and clients’ inventories.
To meet the growing memory demand driven by AI, SK Hynix has decided to increase the supply of its HBM3E products, which began production in March. They will also expand the customer base of these products. Additionally, the company will launch its fifth-generation 10nm-class (1b) 32Gb DDR5 DRAM products this year to strengthen its leadership in the high-capacity server DRAM market.
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