SK Hynix Inc Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Dongwon Kim - KB Securities Co - Analyst : Thank you very much for this opportunity to ask my questions. I have a question related to the DRAM. Recently, with the continued slowdown in demand for mobile and PC and also because of the intensifying competition, there has been a fall the end of life of the general purpose DRAM such as before and D4 and PD4. Can you give us your price outlook of general-purpose DRAM going forward? And also, if DRAM prices go down, the blended ASPs will fall as well. However, because of increasing share of HPM partners in sales structure, do you believe your blended ASP will move in a different?

Question: Simon Woo - BofA Securities - Analyst : Thank you very much for this opportunity to ask my question. I have a question about the third quarter [bit] growth, especially for NAND products. It seems that growth has been lower than was expected. So can you provide a background as to why this has occurred? But despite this being so, I would like to congratulate you on a lot of good performance.

Question: SK Kim - Daiwa Securities Co. - Analyst : Thank you for this opportunity to ask my question. First of all, let me offer my congratulations for your excellent performance. I have a question about the HBM. Recently, with the potential of a possibility of delays in the delivery of the platform and increase HBM supply from the supplier, there are concerns about a possible oversupply situation in 2025 HBM market. So what is the company's view on this?

Question: SK Kim - Daiwa Securities Co. - Analyst : Thank you for the answer.

Question: Giuni Lee - Goldman Sachs Group, Inc. - Analyst : Hello. My name is Giuni Lee from Goldman Sachs are once again, I would like to also offer my congratulations for your good performance and thank you very much for giving me this opportunity to ask a question. I also have a question of on the HBM. During your presentation, you noted that on your HBM capacity has been largely store and out of 2025. But if there is an additional demand or upside demand for HBM. And or do you have the additional capacity to respond and how you intend to respond? That is my question.

Question: Giuni Lee - Goldman Sachs Group, Inc. - Analyst : Thank you very much for that answer.

Question: Sei Cheol Lee - Citigroup Inc. - Analyst : I have a question related to inventory. There are inventory issues due to the recent slowdown in mobile and PC demand and our market concerns about this matter. So what is the current inventory situation for the company and your customers? I do believe the situation will be different from conventional products compared to the premium products. But when do you think the inventory?

Question: Nicolas Gaudois - UBS Investment Bank - Analyst : Good morning. Nick Gaudois from UBS, thank you very much for taking my question. So going back to HBM. For HBM, you just mentioned, but you started shipping in Q4 24. That seems first of all, earlier, when clears but also clustering, NVIDIA may not need to put HBM3E 12Hi servers before we think Q2 '25 and whatever AMD MI325 starts to be using a Hi, which effectively looks like a reasonably early timeline. So how could we explain this discrepancy? And how do you look at your 12Hi ramp from here? On the back of this, do we think -- what do we think about your likely market share in HBM3E 12Hi compared to your already high market share in HBM3E 8Hi? Thank you.

Question: Sun Woo Kim - Meritz Securities Co. - Analyst : Thank you very much. I have a question about your investment for demand. Seems to be that we have a rather conservative strategy when it comes to investments. Are you making proactive and aggressive investments when it comes to the DRAM side seems to be rather conservative when it comes to DRAM5. So what is the market outlook that you have for the nine products? And what is your strategy to respond to this market situation?

Question: Sun Woo Kim - Meritz Securities Co. - Analyst : Thank you so much.

Question: Jay Hyun Kwon - JPMorgan Chase & Co - Analyst : It is said that HBM requires about 3x more wafers than conventional DRAM for the same chip production. But if we transition to HBM4, will the conversion ratio become even larger compared to a conventional DRAM?

Question: Min-Suk Key - Korea Investment & Securities - Analyst : First of all, let me offer my congratulations for your excellent performance for this quarter. I have a question related to China. Recently, aggressive capacity expansion by Chinese direct suppliers is of concern for the market as a more Chinese suppliers are entering into the memory market. So my question is, what is your medium to long term response to join us entry into the memory market?

Question: Min-Suk Key - Korea Investment & Securities - Analyst : Thank you so much.

Question: Dong Hee Han - SK Securities Co. - Analyst : Thank you very much. I am Han, Dong Hee from SK Securities. I have a question related to your capacity investment plans. So may I ask what your investment plans is for capacity related to 2024 and 2025? And if there is a downturn in the memory market that is more serious than what you have expected. How do you plan to reduce such investment plans going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 24, 2024 / 12:00AM, 000660.KS - Q3 2024 SK Hynix Inc Earnings Call

Question: Ricky Juil - HSBC - Analyst : If you look at B/G growth in ASP performance, it appears that it will be at a level that is similar to the previous quarter -- the NAND sales. And I believe there is also some improvement in your margins. This may be due to the product mix improvement that you have mentioned during your presentation? And -- or is there any one-off expenses that has been reflected in the third quarter such as the write-back of the losses on valuation of inventory and other such one-off expenses? And also going forward, in the fourth quarter and onwards, do you have any remaining one-off expenses that needs to be further reflected?

Question: Young Ho Ryu - NH Investment & Securities Co. - Analyst : First of all, I would like to congratulate you on your record high quarterly performance this quarter. And I have a question on HBM4. So what is the HBM4 development status? And do you believe you can maintain the technical leadership in HBM4 as well. And one of the biggest differences that REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 24, 2024 / 12:00AM, 000660.KS - Q3 2024 SK Hynix Inc Earnings Call we see forthcoming related to HBM4 is, of course, the logic die -- and so with regard to logic die, it seems that the cooperation with the customers and the foundries will be even more important going forward. So would this mean that there would be any changes in the way that you cooperate with your customers and foundries going we'd