The demand for HBM is crazy! SK Hynix "busy" AI memory chips full of orders next year

SourceBlackminnowHuang Yu seen and heard on Wall Street

After SK Hynix even booked up the production capacity of next year's HBM chip.BlackminnowChose to spend more than US $10 billion to build factories in the United States and South Korea to expand production capacity.

AI fever makes SK Hynix so popular!

South Korean semiconductor giant SK Hynix announced on Thursday that its 2025 capacity to produce high-bandwidth memory chips (HBM) was almost fully booked as the explosion of artificial intelligence led to a surge in demand for memory chips.

And in order to stay ahead of its rival Samsung, SK Hynix plans to produce the next generation of HBM chips in the third quarter of this year.

SK Hynix, the second largest memory chip manufacturer in the world, has caught up with the wave of AI with the technical leadership of its core HBM storage system. The operating profit reached 2% in the first quarter of this year.Blackminnow.886 trillion won, turning losses into profits from the same period last year, up 734% from the previous month, much higher than the 1% expected by analysts.Blackminnow0.8 trillion won, the second highest since 2018, with an operating profit margin of 23%, a net profit margin of 15% and a gross profit margin of 39% in the first quarter.

It has also pushed SK's shares up more than 20 per cent so far this year.

In order to meet the huge demand of AI wave for HBM chips, SK Hynix is still expanding its production capacity recently.

In early April, SK Hynix announced that it would spend $3.87 billion to build an advanced packaging plant and artificial intelligence product development center in West Lafayette, Indiana.

By the end of April, SK Hynix plans to invest about $14.6 billion to build a memory chip factory in Qingzhou, South Korea, to expand the capacity of the next-generation DRAM, including HBM, to cope with the fast-growing demand for AI.

When investors questioned how SK Hynix would maintain capital expenditure in response to the rapid expansion of SK Hynix, Kim Woo-hyun, chief financial officer of Hynix, responded that in the medium to long term, sufficient cash flow was expected to be generated from the company's operations to finance the necessary chip projects to ensure a balance between production and financial health.

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