South Korean chipmaker SK Hynix has declared the market hit its nadir during the first quarter of 2023.
The memory chipmaker reported a A$3.8 billion operating loss for the three month period, but expects a rebound during the third quarter, “after bottoming out in the first, driven by a gradual increase in sales volume”, according to its letter to investors.
“The memory market, which is still under tough conditions, seems to be bottoming out,” said Kim Woohyun, Chief Financial Officer at SK Hynix.
“We will make all efforts to restore the corporate value by focusing on improving profitability and technology development as we believe that the market will soon find a balance.”
“The company forecasts an improvement in market conditions from the second half of 2023, as memory inventory levels at customers declined throughout the first quarter, while inventory across the memory industry is expected to improve from the second quarter with production cut by suppliers taking into effect.
“The company also expects the growing high-performance server market for artificial intelligence including ChatGPT and a wider adoption of high-capacity memory products by customers to have positive impact on the market.”
