SK Hynix CEO Kwak Noh-Jung said that as the company develops and improves its technology, its market value may double in the next three years. It is understood that in December last year, the memory manufacturer became South Korea's second-largest company by market capitalization, second only to its main competitor Samsung Electronics. The company has benefited from surging demand for artificial intelligence equipment.
In addition, Nvidia's (NVDA.US) high-standard AI accelerators make extensive use of SK Hynix's high-bandwidth memory (HBM), giving it an advantage over Samsung and U.S. rival Micron Technology (MU.US).
"There are only three HBM vendors in the market," Kwak Noh-Jung, 58, said at the CES technology conference in Las Vegas. "I can definitely say that SK Hynix is the clear leader in the HBM field."
When asked whether the company would consider easing production cuts implemented in response to declining memory demand, Noh-Jung said SK Hynix would remain flexible and adopt different strategies for each product.
Noh-Jung said: "For DRAM, we may adjust the production reduction policy in the first quarter, and for NAND, we may make the same adjustment after the first half."
It is worth mentioning that SK Hynix is expected to report holiday quarter earnings later this month. Samsung Electronics reported its sixth straight quarter of operating profit decline on Tuesday, indicating that a widely expected rebound in demand has yet to fully materialize.