SK hynix Adjusts HBM4 Production Pace, Reallocates Resources to General DRAM

According to Chosunbiz, SK hynix is putting more weight on targeting the commodity DRAM market while adjusting the pace of expanding mass production of 6th-generation high bandwidth memory (HBM4). With HBM already accounting for more than 40% of revenue and establishing an overwhelming lead, the company says it is reallocating resources to secure additional revenue from commodity DRAM, where the supply shortage is severe, rather than engaging in excessive capacity expansion races. According to the industry on the 23rd, SK hynix is said to be slightly delaying the conversion of some 5th-generation HBM (HBM3E) production lines that were originally set to transition to HBM4. The policy is to boost responsiveness in the commodity DRAM market, which is currently recording a higher operating margin than HBM, to secure additional revenue. In addition, it is said that its three-year DDR5 supply contract with Microsoft is also interpreted as a move to secure long-term earnings visibility in commodity DRAM.