January 22, 2025
Release Date: January 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q : How do you view the memory market for this year, considering the decline in commodity memory prices due to weak demand and increased supply from Chinese manufacturers? Is this a short-term adjustment or a longer-term correction similar to 2023? A : Woo-Hyun Kim, VP & CFO: We anticipate that the commodity memory market will continue to show weak pricing trends in the short term due to low seasonal demand and inventory adjustments. However, in the second half, we expect increased demand for high-end memory in AI PCs and smartphones, which should balance supply and demand. We predict continuous growth in the AI memory market, while conventional memory markets will undergo a gradual correction.
Q : Could you provide details on your preparation for HBM4, particularly regarding production and shipment timelines? A : Woo-Hyun Kim, VP & CFO: Our HBM4 product is being developed using proven 1Z nanometer technology. We aim to complete development and be ready for ramp-up by the second half of this year. Initial supply will begin with 12-high products, followed by 16-high products based on customer demand, with shipments expected in the second half of next year.
Q : Considering the current demand environment, is there any possibility of reducing infrastructure investment this year compared to last year? A : Woo-Hyun Kim, VP & CFO: We plan a slight increase in investment this year, mainly driven by HBM investments and the construction of new fabs. We prioritize investments in products with proven profitability and respond to market changes with agility and flexibility.
Q : How do you assess the technological capabilities of Chinese companies entering the DDR5 and HBM market? A : Woo-Hyun Kim, VP & CFO: Chinese manufacturers have expanded supply of DDR4 and LPDDR4, leading to price drops. While there are reports of DDR5 development by Chinese companies, they are significantly behind the advanced nodes used by major suppliers.
Q : What is the status of SK Hynix's 1Z nanometer development, and what are your plans for expanding investment? A : Woo-Hyun Kim, VP & CFO: We completed the development of 1Z nanometer products in the second half of last year and are ready for mass production. Our 1Z nanometer DDR5 products support faster speeds and improved power efficiency, designed to meet future server demand. We plan to apply this technology to HBM4 E in the future.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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