SK Hynix 000660,
It returned to operating profit in the fourth quarter of 2023 thanks to brisk demand for AI chips and other cutting-edge products.
The South Korean memory chip maker's turnaround after posting four straight quarters of operating losses was the latest in signs pointing to a rebound in the global semiconductor industry.
SK Hynix said operating profits for the quarter ending in December amounted to KRW 346.03 billion ($259.5 million), compared to operating losses of KRW 1.912 trillion during the same quarter of the previous year.
Demand for powerful computing chips used in artificial intelligence servers and mobile applications rose sharply in the latest quarter, boosting the company's sales and average selling prices.
However, SK Hynix posted a net loss in the fourth quarter, an operating loss and a net loss for 2023, as it has not fully emerged from the industry downturn.
Net loss for the quarter fell to KRW 1.379 trillion from KRW 3.735 trillion a year earlier, while revenue rose 47% to KRW 11.306 trillion.
For the full year, revenue fell 27% to KRW 32.766 trillion resulting in a net loss of KRW 9.138 trillion and an operating loss of KRW 7.730 trillion.
For 2024, SK Hynix said it will focus on improving profitability through sales of value-added products while continuing to develop advanced artificial intelligence and other high-performance chips.
The company said it will reduce capital spending increases for stable business operations this year.
Analysts mostly expect SK Hynix to remain on track to recover from the rebound in demand and prices this year.
