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Another major chipmaker is getting a boost from the generative artificial intelligence boom.
South Korea-based SK Hynix reported its highest quarterly profit in six years for the second quarter of 2024, driven by AI chip demand. The memory chipmaker reported second-quarter revenues of 16.4 trillion won ($11.9 billion), and an operating profit of 5.5 trillion won ($4 billion). Second-quarter revenue was at an “all-time high,” and operating profit hit 5 trillion won ($3.6 billion) for the first time since 2018 “during the semiconductor super boom,” SK Hynix said. In the same quarter last year, SK Hynix, the world’s second-largest maker of memory chips, reported an operating loss of 2.9 trillion won ($2.1 billion.)
A “continuous rise in overall prices” of its memory chips, including ones that are used in highly sought AI hardware from Nvidia, drove profit for two quarters straight, the chipmaker said. The strong demand for AI memory chips led to a 32% increase in revenues from the previous quarter. The chipmaker expects demand for AI server memory chips to continue rising during the second half of the year.
In April, SK Hynix announced plans to build an advanced packaging facility for next-generation high-bandwidth memory (HBM) chips in West Lafayette, Indiana. The chipmaker also said it would collaborate with Purdue University for research and development efforts. The investment is expected to cost $3.9 billion.
“We are excited to become the first in the industry to build a state-of-the-art advanced packaging facility for AI products in the United States that will help strengthen supply-chain resilience and develop a local semiconductor ecosystem,” SK Hynix chief executive Kwak Noh-jung said when the plant was announced. “With this new facility, we hope to advance our goal of providing AI memory chips with unmatched capabilities, serving the needs of our customers.”