SK Hynix, the world’s second-largest memory chip maker, reported a record quarterly operating loss of $2.54 billion for the first quarter of the year. The results were recorded as the biggest loss since SK Group acquired Hynix in 2012.Record loss at SK Hynix
SK Hynix posted an operating profit of $2.1 billion in the same period of last year, and an operating loss of $1.4 billion in the previous quarter. The company’s total revenue for the quarter fell 58 percent to $3.8 billion. However, the net loss was recorded as $1.94 billion.
The world’s second-largest memory chip maker said operating losses widened as a result of “sluggish demand and lower product prices” as the industry’s downturn continued into the first quarter. The company still expects a recovery in the second half of the year. In addition, it is stated that the growing artificial intelligence industry such as ChatGPT demands high-performance server market and high-capacity memory products, while it is stated that the demand here will support SK Hynix.Currently, DRAM and memory stocks are not depleted. Analysts predict prices will fall between 10 percent and 20 percent in the second quarter. For this reason, serious losses are expected in SK Hynix in the second quarter. On the other hand, rival Samsung will announce its first quarter results tomorrow. Samsung hopes to generate an operating profit of $449 million. While this value may seem like “profit,” if the forecast holds, it will be the company’s lowest profit since the first quarter of 2009.
49368
