SK hynix announced today that it recorded 12.43 trillion won in revenues, 2.886 trillion won in operating profit (with an operating margin of 23%), and 1.917 trillion won in net profit (with a net margin of 15%) in the first quarter.

With revenues marking an all-time high for a first quarter and the operating profit a second-highest following the records of the first quarter of 2018, SK hynix believes that it has entered the phase of a clear rebound following a prolonged downturn.

The company said that an increase in the sales of AI server products backed by its leadership in AI memory technology including HBM and continued efforts to prioritize profitability led to a 734% on-quarter jump in the operating profit. With the sales ratio of eSSD, a premium product, on the rise and the average selling prices rising, the NAND business has also achieved a meaningful turnaround in the same period.

SK hynix forecasts the overall memory market to be on a steady growth path in coming months as demand for AI memory continues to rise, while the market for the conventional DRAM also starts to recover from the second half. Industry experts believe that inventories both at suppliers and customers will decrease as an increase in production of premium products such as HBM requires higher production capacities than conventional DRAM, resulting in a relative reduction in conventional DRAM supply.

(Photo credit: SK Hynix)

According to reports from global media outlets like MacRumors and Wccftech on April 23rd, Apple is said to be developing its first in-house AI processor for PCs, the M4 chip, and is also working on a self-developed AI server processor using TSMC’s 3-nanometer process, with plans for mass production expected in the second half of 2025.

As per Wccftech’s report, based on the production schedule, Apple’s AI server processor might utilize TSMC’s “N3E” process. It is rumored that the N3E process is also used for producing products like the A18 Pro, the upcoming Qualcomm Snapdragon 8 Gen 4, and the MediaTek Dimensity 9400, among other major clients’ products.

Regarding this matter, per a report from Economic Daily News citing sources, it has indicated that Apple’s development of AI server processors will bring new momentum to TSMC’s advanced process orders. Subsequently, assembly orders for related AI servers are expected to be undertaken by Foxconn, becoming two major benefactors of Apple’s aggressive push into AI among Taiwan’s manufacturers.

The source referenced previous reports suggesting that Apple has secured the initial capacity for TSMC’s 3-nanometer process for at least a year. According to TSMC’s financial reports, the revenue contribution from its largest customer exceeded NTD 500 billion in 2022 and is projected to reach NTD 546.5 billion in 2023, setting a new record. TSMC’s largest customer is, anticipated by the report from Economic Daily News, to be Apple.

The same report from Economic Daily News continues by quoting industry sources who revealed that Apple has conducted extensive AI functionality testing, which is highly confidential. Apple and Foxconn have reportedly been engaged in many projects and ongoing tests.

With Apple’s full-scale push into the AI field and plans to introduce AI features in this year’s new iPhone models, there are also rumors of Apple possibly launching its own developed AI chip.

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(Photo credit: Apple)

SK Hynix announced on April 24th that it plans to expand production capacity of the next-generation DRAM including HBM, a core component of the AI infrastructure, in response to the rapidly increasing demand for AI semiconductors.

As the board of directors approves the plan, SK Hynix will build the M15X fab in Cheongju, North Chungcheong Province, for a new DRAM production base, and invest about 5.3 trillion won for fab construction.

SK Hynix plans to start construction at the end of April with an aim to complete in November 2025 for an early mass production. With a gradual increase in equipment investment planned, the total investment in building the new production base will be more than 20 trillion won in the long-term.

With the advent of the AI era, the semiconductor industry believes that the DRAM market has entered a mid- to long-term growth phase. Along with HBM, which is expected to grow more than 60% annually, SK Hynix forecasts that demand for general DRAM will be on a steady rise led by high-capacity DDR5 module products for servers.

As HBM requires at least twice as large capabilities to secure the same production as general DRAM products, SK Hynix decided that increasing DRAM capabilities with a focus on HBM is a precondition for future growth.

The company plans to produce new DRAM from the M15X in Cheongju before the completion of the first fab in Yongin Semiconductor Cluster in the first half of 2027. Being located near the M15, which has been expanding TSV capabilities, the M15X is the best conditioned for optimization of HBM production.

Separately, SK Hynix will proceed with other domestic investments including the Yongin Semiconductor Cluster, where it will to inject approximately 120 trillion won, as planned.

The Yongin project is gaining speed with the process rate for groundwork marking 26%, which is 3% faster than the target. Major preparatory works including land compensation procedures and investigation of cultural properties have been completed, and construction of the infrastructure ranging from power and water to roads is also gaining speed. The company plans to start construction of the first fab in Yongin in March next year and complete it in May 2027.

(Photo credit: SK Hynix)

Samsung Display (SDC), a subsidiary of Samsung, has been developing its own OLEDoS (OLED on Silicon) technology. However, there are reports now indicating that Samsung’s smartphone division plans to adopt Sony’s OLEDoS technology for integration into Samsung’s XR devices.

According to the Korean media “The Elec,” Samsung’s MX division has decided to utilize the technology from Sony instead of the technology from the group’s SDC, reflecting Samsung’s need for a new technology manager to oversee new semiconductor devices (referring to electronic components, such as OLEDs and transistors).

This newly created position for device development must oversee the technological advancement of all of Samsung’s electronic businesses, including Samsung MX, DS (chip division), displays, and motors. If Samsung’s subsidiaries had collaborated closely from the outset, then Samsung’s MX division might have adopted SDC’s technology instead of Sony’s. A similar situation has also occurred with the glass substrate developed by Samsung Electronics.

“The Elec” believes it is strange that SDC has not collaborated with the group’s companies on OLEDoS technology, as SDC has expertise in glass processing. This highlights a lack of clear roles and responsibilities within Samsung, which is a significant waste of internal resources.

OLEDoS and glass substrate microdisplays require close cooperation between departments such as semiconductors, displays, circuit boards, and display glass processing technology. If these departments are well integrated, it could bring opportunities for Samsung, as the company has departments capable of handling all related technologies.

However, the current situation does not reflect this. SDC initiated the M project at the end of 2022, aimed at developing OLEDoS and LED on Silicon technology. But SDC losing to Sony now means the former will lose valuable production experience.

(Photo credit: Samsung)

According to the latest memory spot price trends released by TrendForce, overall DRAM spot market demand has not further heated up, and transaction volume has further shrunk. NAND Flash, affected by pessimistic demand, is experiencing a lack of enthusiasm in market price inquiry transactions. For more details:

DRAM Spot Market:

In the spot market, demand has not risen further for chips, and the overall transaction volume continues to shrink. Most module houses have been slow to reduce inventory, so the situation with spot trading has not been ideal. However, procurement momentum is relatively healthy for server DRAM RDIMMs mainly because DRAM suppliers have significantly increased contract prices for these products, thereby causing some increase in demand in the spot market.

Overall, various DRAM products are currently not consistent in terms of price increases and declines. Further observations on the demand situations across different application segments are necessary to determine their price trends. The average spot price of mainstream chips (i.e., DDR4 1Gx8 2666MT/s) rose by 0.21% from US$1.945 last week to US$1.949 this week.

NAND Flash Spot Market:

Price inquiries have not been robust under a poor outlook on demand as the spot market has started manifesting room for negotiations with channel traders, or even module houses, experiencing an excessive inventory, alongside the obstruction on a further hike of 3D wafer prices. Spot prices of 512Gb TLC wafers have dropped by 0.03% this week, arriving at US$3.764.