Good afternoon and evening. My sincere gratitude to each of you for your presence here today. Let's commence the SK Hynix 2023 Q4 earnings release conference call. Following SK Hynix presentation, we will have a Q&A session. To pose a question, please press star key and number one on your phone keypad. Please note that presentations will be interpreted simultaneously, and the Q&A session will be interpreted consecutively. Without further ado, let's proceed with the SK Hynix presentation. Good morning, afternoon, and evening. This is Seong Hwan Park, the Head of IR at SK Hynix. Welcome to the SK Hynix 2023. Allow me to introduce the executives present here with me today. We are joined by CFO, Woo-Hyun Kim, Head of DRAM Marketing, Kyu Hyun Kim, and Head of NAND Marketing, Seok Kim. Let me issue a disclaimer that all outlooks presented by the company are subject to change, depending on the macroeconomic and market circumstances. With that, we will now begin the SK Hynix earnings release conference call for fourth quarter and full year of 2023. Mr. Kim will first present the earnings, followed by the company's future plans and market outlook. Good morning, everyone. This is CFO Woo-Hyun Kim. Allow me to first introduce the company's performance for the fourth quarter of 2023. Amid the ongoing recovery in IT demand, the fourth quarter observed notable growth in demand for HBM and high-density DDR5 for AI servers, as well as mobile memory from our customers in the Greater China region. As a result, not only DRAM, but NAND prices also turned positive, further improving the memory market environment. Driven by the increased pricing of memory products, our fourth quarter revenue reached KRW 11.31 trillion, up 25% QoQ, and 47% year-on-year. For DRAM, our focus was on enhancing profitability rather than increasing shipment volume. By expanding sales of high-value-added products, such as HBM and high-density DDR5, we saw a low single-digit increase in DRAM shipments compared to the previous year, sorry, previous quarter, albeit lower than the initial guidance. Meanwhile, the ASP rose by 18% sequentially, surpassing the growth rate in the previous quarter. For NAND, we reduced sales of low-margin products while expanding sales of mobile and eSSD products. As a result, bit shipment decreased by low single digits sequentially, outperforming our earlier guidance. The ASP rose by over 40%, driven by price increases across all application products and a higher contribution from higher-priced solution products. With stronger pricing, we saw profitability improve and previously recognized inventory valuation losses were further reversed. As a result, our fourth quarter operating profit was KRW 0.35 trillion, with an operating profit margin of 3%, marking a turnaround after a full year of losses. Depreciation and amortization expenses for the fourth quarter was KRW 3.24 trillion, decreasing further due to reduced capital spending. EBITDA recorded KRW 3.58 trillion with an EBITDA margin of 32%. Non-operating loss net of gain in the fourth quarter was KRW 2.22 trillion. This includes net interest expense of KRW 0.33 trillion, net foreign currency-related gain of KRW 0.26 trillion, Kioxia investment valuation loss of KRW 1.43 trillion, and valuation loss of conversion by the foreign convertible bonds that we issued last year, which occurred due to a rise in our share price. As a result, our net pre-tax loss was KRW 1.87 trillion, the net loss was KRW 1.38 trillion, and the net profit margin was -12%. I will now present our financial performance for 2023. The memory market faced challenges in 2023 due to concerns of high interest rates and economic recession, resulting in a severe downturn. Despite significantly expanding sales of our industry-leading AI memory products, our consolidated revenue recorded KRW 32.8 trillion, a decrease of KRW 11.9 trillion compared to the sales of 2022. In DRAM, we responded swiftly to the surging demand from AI customers with premium products like high-density DDR5 and high-performance HBM3, leveraging our technological competitiveness.... DDR5 sales increased by more than 4 times, and HBM3 sales increased more than 5 times compared to the previous year. We solidified our position as a leading company in the HBM market, a core product of AI memory. In line of the challenging demand landscape, particularly for NAND, unlike DRAM that experienced benefits from AI, we maintained conservative production stance, placing emphasis on improving investment and cost efficiency. Despite our efforts in investment and cost reduction, sales decreased significantly due to price declines, resulting in an operating loss of KRW 7.7 trillion in 2023. Consolidated cash balance, including short-term investments at the end of the year, was KRW 8.9 trillion, up by KRW 2.5 trillion from the prior year-end. Interest-bearing debt was KRW 29.5 trillion, with an increase of KRW 6.5 trillion from the end of 2022. Our debt-to-equity ratio and net debt-to-equity ratio at the end of 2023 were 55% and 38%, respectively. Due to a large operating loss in 2023, free cash flow, which is cash flow from operating activities, less the acquisition of PP&E, was -KRW 4 trillion. Accordingly, the dividend for the fourth quarter will be KRW 300 per share, and the cumulative dividend for 2023 will be KRW 1,200 per share. Next, I will discuss market outlook and the company plans. While uncertainties persist in the memory market, we have seen a positive shift in the supply-demand landscape since the second half of last year, moving away from a severe downturn toward recovery. Positive growth in PC and mobile phone set shipments is anticipated after two consecutive years of negative growth. Moreover, the demand for general-purpose servers is expected to rebound, aligning with the recovery in AI servers, driven by increased customer spending. PC units are projected to grow by mid-single-digit%, driven by delayed PC replacements and Windows upgrade demand. Looking ahead, the AI PC market, requiring more than double the DRAM content of current PCs, is expected to drive both PC shipments and content growth in the long term. Smartphone market, which is now a mature market, a mid-single-digit growth in units is anticipated compared to the previous year, driven by replacement demand and the recovery of consumer purchasing power. Furthermore, the demand for high density and high-spec mobile memory is set to rise with an increase in flagship product demand. Moreover, if the introduction of AI phones and the proliferation of AI applications lead to substantial enhancements in features and user convenience beyond what conventional smartphones offer, the smartphone market could experience another leap forward. The server market is anticipated to undergo a gradual recovery this year as the commercialization of generative AI begins, and increased investment from major server customers are expected. As the demand for the component configuration for AI servers become more fragmented, allowing diverse hardware configurations and thus easing price burdens, a recovery in investment for general-purpose servers is also likely to be seen. The growth trend of AI server shipments is also expected to persist, with the inclusion of inferencing demand alongside training demand. In summary, this year's demand growth for DRAM and NAND is expected to be in the mid- to high-teens%, respectively, and we plan to respond flexibly to grow in line with market growth levels. Despite seasonality in demand, we anticipate continued price improvement in the first quarter and intend to maintain a focus on profitability in our operations. Consequently, we expect a mid-teens% decrease in DRAM shipments QoQ, with the potential for further profit expansion driven by favorable pricing. For NAND, we anticipate a mid-single-digit increase in bit QoQ, as NAND pricing improvement is also expected to continue. Anticipating a recovery in demand this year, we expect gradual adjustments to production cuts, aligning with the normalization of industry inventory levels. However, overall production growth will be constrained as focus moves toward high-demand premium products, requiring advanced processes, while production of legacy products continues to decline. Therefore, despite the recovery in utilization, we estimate industry production growth to be within the single-digit range, mainly caused by the die size penalty impact in shifting production to value-added products. Therefore, we expect industry inventory levels to continue to decline throughout the year. We will accelerate the development of our industry-leading AI memory products and proactively respond to customer demand. Furthermore, we are committed to profitability-focused operations and cost optimization, strengthening our foundation for sustained success. First, for DRAM, we are on track to supply HBM3E, which is anticipated to grow significantly in demand. We have initiated the development of the next generation product, HBM4. We aim to broaden our product lineup in order to meet diverse customer demand. We plan to expand our high-density solution offerings, including not only 128 GB DDR5, but also up to 256 GB modules, for which demand has recently been rising. Our high-performance mobile DRAM product, LPDDR5T, will range from 16 GB-24 GB. In addition, we will strengthen our technological leadership in the evolving memory market by preparing mobile modules, such as LPCAMM2, for on-device AI and high-performance server modules like MCR DIMM. For NAND, where recovery is more gradual, we focused on improving efficiency through production cuts of low-margin products and inventory reduction. This year, we plan to maximize investment efficiency, utilizing existing capacity for demand, and enhance our product lineup with premium products, such as eSSD, aiming for higher sales of solution products. We will continue to find ways to optimize the use of our existing assets, thereby transforming our NAND operations to be more stable, even under the fluctuative demand environment. Meanwhile, CapEx is expected to grow from the reduced levels of last year following an unprecedented downturn. However, we plan to minimize the incremental growth as we try to execute based on profitability and customer demand, as well as focus on investment efficiency. Following the era of PC, mobile, and data centers, the memory market is entering a new stage of advancement with the emergence of AI. The AI era is expected to drive fundamental changes and growth of the memory industry, with rising importance of memory as a key player in data processing and diverse specification needs from customers. These transformations require long-term collaboration among memory suppliers, customers, and partners, enhancing visibility of the memory industry and reducing volatility in the memory cycle. We are gearing up to go beyond traditional methods, introducing new value in line with the changes in the memory industry. We are preparing optimal memory solutions tailored to each customer's needs. Furthermore, by ensuring the smooth preparation of the new Yongin cluster production site, we aim to evolve into a total AI memory provider, not only in technology, but also in customer service and production capabilities. Next, let me share our ESG management activities and performance. We completed the human rights assessment process initiated in 2021, covering domestic and overseas sites of our company and five other subsidiaries. This evaluation focused on examining the overall governance system for human rights management, identifying potential human rights infringements and areas for improvement through employee surveys and interviews. Based on the results, we will formulate action plans for future improvement to elevate our human rights management. Recently, we unveiled a more specific human rights and labor policy aligning with global human rights initiatives, such as the International Labor Organization. In addition, our human rights and labor council, involving key departments within the company, ensures more systematic human rights management activities. In 2022, we announced specific targets for our ESG strategy framework, PRISM, covering environmental, social, and governance. In 2023, notable achievements include reducing level of greenhouse gas emissions and enhancing supply chain management. Our commitment continues in 2024 to obtain mid- to long-term PRISM goals with transparent disclosure of related achievements as we strive for sustainable management. Thank you. With that, we are now ready to take your questions. 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 일번을 눌러주시기 바랍니다. 질문을 취소하시려면 별표와 이번을 눌러주시면 됩니다. Now, Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone. 처음으로 질문해 주실 분은 다이와증권의 김성규님입니다. The first question will be provided by Sung Kyu Kim from Daiwa Securities. Please go ahead with your question. 아, 예, 안녕하세요. 좋은 실적 축하드립니다. 저 두 가지 질문드리겠습니다. 그 첫 번째 질문은 그 4분기 지금 실적을 보면, 메모리 가격 반등이 예상했던 것보다 좀 빠르고, 그리고 높은 강도로 진행이 되고 있는 것 같습니다. 한편 아직 실수요 개선은 좀 더딘 것 같은데요. 하지만 업체들이 지금 적극적으로 감산했다는 그 영향으로 보이는데, 지금 회사가 보시기에 그 올해 2024년 메모리 수급 전망, 그리고 가격 전망은 어떻게 되는지 궁금합니다. 두 번째 질문은 HBM에 대한 질문입니다. 그 작년에 그 당사 HBM에서 굉장히 그 독보적인 위상을 유지한 걸로 알고 있는데요. 올해 그 HBM 위상에 어떤 변화가 있는지, 뭐 경쟁이 좀 더 심화될 것 같다든지, 이제 그런 어떻게 보시는지 의견 부탁드리고, 향후 Capa 확대 계획도 좀 알려주시면 감사하겠습니다. 이상입니다. First of all, congratulations on the good business results. And now looking at the Q4 results, we see that the memory prices have gone up quite rapidly and also quite intensely, more so than we had expected. But then at the same time, real demand recovery is, appears to be yet to follow. Perhaps that also has to do with some active production cuts. So then, what is the company's outlook for the memory demand and supply, as well as the prices in 2024? And the second part of my question is on HBM, where the company has enjoyed truly a unique position last year. And does the company foresee any changes in the HBM landscape this year, perhaps a stronger competition or any other changes? And also, what is the plan for the expected capacity? 네, 먼저 첫 번째 질문인 2024년 메모리 수급 및 가격 전망 관련해서 답변드리도록 하겠습니다. 지난 2년간 전례 없이 낮은 수요 성장률과 사상 최고 수준까지 도달한 재고를 감축하기 위해서 메모리 공급 업체들은 지난 1년 적극적인 감산과 과감한 투자 축소로 다운턴에 대응해 왔습니다. Now, I'd like to respond to your question on, about the memory supply and demand outlook, as well as the prices. Now, memory suppliers have responded to the downturn with aggressive capacity cuts and investment reductions over the past year, against two years of unprecedentedly low demand growth and a near record level inventory. 적극적인 감산으로 업계 생산 증가율은 2023년에 역성장하였고, 작년 하반기부터는 의미 있는 수준으로 재고가 줄어들면서, 가격이 개선되기 시작했습니다. The aggressive production cuts caused negative growth in industry production in 2023, and prices began to improve in the second half of the year, as inventories were reduced by meaningful levels. 물론, 수요의 개선 수준과 속도는, 매크로 환경 등 여러 변수에 의해 달라질 수 있겠습니다만, 올해 당사는 D램, 낸드 모두 약 10% 중후반의 수요 성장률을 예상하는 반면에, 생산 증가율은 한 자릿수에 그칠 것으로 보여 수요 성장률이 생산 성장률을, 증가율을 크게 상회할 것으로 예상합니다. But of course, how fast and how much demand will improve is subject to a number of factors, like the macro environment. But this year, demand growth is expected to significantly outpace production growth, with demand for both DRAM and NAND likely to grow by mid- to high-teens%, while production growth remains in the low single-digit. 전통적으로 하반기 수요 강세를 보이는 PC와 모바일은 올해 출하량이 성장세로 돌아설 것이고, 새로운 기능이 추가되는 하이엔드 제품이 수요를 견인하면서 채용량 증가율은 예년 수준인 10% 이상이 전망됩니다. For PC and mobile, which traditionally see stronger seasonality in the second half, they are expected to see content growth, expected at over 10%, which is the usual level. 올해 서버도 기업들의 IT 투자가 증가하면서, AI 서버 출하 강세와 강세가 지속될 것으로 보이고, 또한 일반 서버의 회복으로 출하량이 플러스로 전환될 것이며, 트레이닝 수요에 더해 인퍼렌싱 수요가 발생하고, 새로운 CPU와 GPU가 지속 출시되면서 계속해서 채용량은 성장할 것으로 기대합니다. For servers, content growth is expected to continue. Companies' IT investment will increase, with strong shipment of AI servers and recovery in general servers, which will turn overall shipment to growth. There will be demand for inference, in addition to demand for training, and new CPUs and GPUs will be released. 공급업체들이 DDR5와 HBM 등 수요가 높은 제품 중심으로 생산 확대를 위해 가동률을 점진적으로 회복시켜 가겠지만, 이들 프리미엄 제품이 가지는 다이 사이즈 페널티, 그리고 상대적으로 낮은 생산성 등의 효과 때문에 업계의 생산 증가는 제한적일 것으로 전망합니다. Suppliers will gradually restore utilization rates to ramp up production, beginning with high-demand products like DDR5 and HBM. But industry-wide production increase will be limited due to the die size penalty, specific to premium products, as well as lower productivity. 따라서 2024년 메모리 업황은 지속 개선될 것으로 판단하고 있습니다. 재고는 꾸준히 줄어들어 연말에는 업계 내 재고가 낮은 수준일 것으로 예상하고, 수급 상황에 따라서 2025년까지 메모리 시장의 상승세가 유지될 가능성도 기대하고 있습니다. Thus, the memory market is likely to keep improving in 2024. Inventory will steadily decrease, bringing the industry-wide inventory to a low level by the end of the year. Depending on supply and demand conditions, the recovery momentum could be sustained into the next year as well. 두 번째로, 그 당사 HBM 2쌍에 대한, 의견에 대한 답변 드리도록 하겠습니다. Now, let me move on to the second part of your question, which was about the company's position in the HBM market. HBM 시장은, 속도, 발열 제어, 파워 등, 전반적인 제어스, 제품 특성뿐만 아니라, 고객과의 긴밀한 협력을 통해 적기 공급할 수 있는 능력, 그리고 advanced packaging과 같은 신규 기술에 대한 대응 능력이 복합적으로 요구가 되는, 난이도 높은 시장입니다. Now, first off, HBM is a quite challenging market. You need not only a combination of product-specific features like speed, thermal control, and power, but also the ability to ensure timely delivery in close cooperation with customers, and also the ability to respond to new technologies, such as advanced packaging. 당사는 지난 십 년간 축적된, 제품 개발과 양산 경험에 더해서 고객 피드백을 꾸준히 HBM 사업 전반에 반영해 왔습니다. 이를 바탕으로, 단순히 제품의 개별 특성 개선에 국한된 것이 아닌, 포괄적인 고객의 니즈를 충족할 수 있는 HBM의 선두 주자가 될 수 있었습니다. Now, on top of product development and mass production experience we have accumulated over the past decade, we have also incorporated customer feedback into our HBM business, which helped establish our leadership in HBM that we see today, who can fulfill the whole set of customer needs, not just individual features. 올해 수요가 본격적으로 발생하는, HBM3E 제품의 경우, 고객 수요 일정에 맞춰 올해 양산 준비가 순조롭게 진행이 되고 있어, 상반기 중에 공급을 시작할 예정입니다. 그리고 이를 통해서 다양한 HBM 제품으로 고객의 요구에 대응할 수 있도록 하겠습니다. HBM3E, for which there will be real demand this year, is on track for mass production this year to meet customer timeline. Supply will begin in the first half of the year, and we will respond to customer needs with a wide range of HBM products. 또한, AI 시장의 leading player뿐만 아니라, AI 시장에서 큰 비중을 차지할 CSP, 그리고 AI chipset 업체를 포함한 잠재 고객까지 비즈 영역을 확장할 계획입니다. We also plan to expand our customer base to potential customers as well, including not only the leading AI players, but also CSPs and AI chipset providers, who will be a big part of the AI market. 당사는 수요 가시성 확보하에 작년 대비 올해 TSV 캐파를 약 2배 확대할 계획이며, 추가 투자에 대해서는 중장기 수요와 시장 환경 그리고 서플라이 체인 현황 등을 종합적으로 고려해서 신중하게 결정하도록 하겠습니다. Now, with more demand visibility, we also plan to roughly double the TSV capacity this year over last. Any additional investment will be carefully considered against mid to long-term demand, market environment, and the supply chain. 네, 다음 질문해 주십시오. 다음으로 질문해 주실 분은 CGS-CIMB의 이수빈 님입니다. The following question will be presented by Soo Bin Lee from CGS-CIMB. Please go ahead with your question. you see as the inventory levels by application for customer companies and the expected timing for normalization? Please also comment on our company's DRAM and NAND inventory levels. The second question is. As general DRAM prices rise in 2024, the HBM price premium is expected to shrink. Please comment on the differences in characteristics between the general DRAM market and the HBM market. Thank you. Thank you for taking my questions. I also have two. First is about the inventory level. So what is the expected customer inventory level by application? And also, what is the company's inventory level in both DRAM and NAND? And the second question is about the differences in the DRAM and HBM products. So with the increase in the DRAM prices overall, it seems as if the premium effect on the HBM has shrunk. And could the company elaborate on the differences between DRAM and HBM features? 우선 첫 번째 재고 관련해서 답변드리겠습니다. 그 전 응용별 고객사 재고는, 계속해서 건전화 진행 중에, 있습니다. 다만, 사 분기 들어서 향후 메모리 가격을 이제 예상 상승을 예상한 고객들이, 구매를 좀, 구매 수요를 본격적으로 올리기 시작했고요. 특히 그동안 상대적으로, 재고 수준이 낮았던 PC와 모바일 고객 중심으로, 재고를 축적하고 있는 것으로 보입니다. Allow me to first answer the first part of your question about the inventory. Now, we see that the customer inventories across all applications continue to improve, but purchase demand has been rising from Q4 last year, from customers, especially anticipating higher memory prices. PC and mobile appear to be building up inventory from the current relatively low level. 그 최근 고객들의 구매 수요는, 레거시 제품 중심으로 살아나고 있는데요. 이 레거시 제품이 지난해 수요가 급격히 줄면서 공급단에서 재고가 증가했던 제품인 거죠. 반면에 올해는 공급 업체들의 생산 증가가 앞서서 계속 말씀드렸듯이, 대부분, 선단 공정을 필요로 하는 차세대 제품인 쪽으로 갈 것이기 때문에, 고객들 입장에서는 올해 그들의 중저가형 제품 판매를 위한 어느 정도의 그 레거시 제품, 레거시 메모리 제품에 대한, 재고 축적은 필요해 보인다고 판단됩니다. Customer demand recently has been rebounding, starting with legacy products, where suppliers have built up inventory from the sharp drop in demand last year. Given that most of this year's production ramp-up is for next-generation products that require advanced processes, some inventory buildup appears to be necessary to facilitate sales of low and mid-end products. 공급단 쪽에서는 그 하반기로 갈수록 계속 말씀드린 HBM이나 DDR5 같은 선단 제품으로 생산 전환이 가속화될 것이기 때문에, 이에 따라서 레거시 제품들의 공급은 급격히 줄어들고, 연말에는 고객뿐만 아니라 저희 공급사들의 재고도 상당히 lean한 수준으로 줄어들 것으로 기대됩니다. Now, on the supply side, as we move into the second half of the year, production migration to the higher-end HBM and DDR5 will pick up speed, which will further reduce the supply of legacy products as well as customer inventories. By the end of the year, inventory will be lean, not only for customers, but also suppliers. 당사 입장에서도 지난 사 분기에 저희 출하량 성장은 제한적이었음에도 불구하고, 저희 사 분기말 재고 수준은, 지난 분기에 이어서 의미 있는 수준의 감소세를 이어갔습니다. For the company, despite the limited bit growth in Q4, our end of quarter inventory continued to decrease meaningfully QoQ. 당사는 2023년 한 해 내내 그 보수적인 생산 기조를 유지해 왔고요. 그 결과, 지난 3분기부터는- 판매량이 생산량을 상회하면서 하반기에는 재고 수준의 개선세가 분명하게 나타났습니다. We maintained conservative production throughout 2023, resulting in clear improvement in inventory in the second half, as sales outpaced production since Q3. 올해도 그 재고 정상화 시점까지 계속 보수적인 생산 기조를 이어갈 계획이고요. 이에 따라서 DRAM의 경우에는 상반기 중, NAND의 경우에는 하반기 중에는 정상 수준에 도달할 것으로 예상하고 있습니다. We plan to remain conservative into this year until inventory normalization, which we expect to reach in the first half of DRAM and in the second half for NAND. 두 번째로, 그 일반 DRAM 시장과 HBM 시장의 특성 차이 문의에 대한 답변 드리도록 하겠습니다. Allow me to explain the differences between the general DRAM market and the HBM market. AI향 메모리는, 고객의 성능 요구 수준이 매우 높고, 안정적인 품질을 충족해야 하는 제품 특성상 고객과의 긴밀한 협업이 필수입니다. Now, AI memory is a product with high performance and quality requirements, as well as reliable quality, which means that close collaboration with customers is essential. 특히 HBM은 대표적인 AI향 제품으로, 스펙이 표준화는 되어 있지만은, 일반 DRAM 제품과 달리 TSV 공정이 추가로 필요하고, 여러 칩을 적층해서 패키징을 해야 하는 등 완제품 생산까지 필요한 과정이 훨씬 복잡하고 까다로운 제품입니다. HBM indeed is the leading AI product with standardized specifications. At the same time, unlike general DRAM, it is a much more complex and demanding product that requires additional processes, like TSV process, and also stacking of multiple chips to be packaged. 완제품, 완제품이 생산되더라도 이를 또, GPU와 결합하는 패키징 단계가 추가로 필요하고요. 고객과 메모리 업체 간의 협업뿐만 아니라 후공정 업체와의 협업도 필요하기 때문에, 원활한 수요 충족을 위해서는 서플라이 체인 간 병목이 없어야 하는 특징이 있습니다. Even when the product is finished, there is the additional step of combining it with a GPU to be packaged, which requires collaboration not only between customers and memory makers, but also with downstream companies. We must ensure that there are no supply chain bottlenecks throughout the process. 여튼, HBM 제품을 생산하는 데 투입되는 높은 비용과 상대적으로 긴 제조 시간을 고려하여, 시의적절한 수요 대응을 위해서는 고객과 긴밀한 사전 협의가 필요합니다. Given the high cost of production and the relatively long production lead time, close consultation with customers is required to ensure timely response to demand. 당사는 HBM에 투입되는 R&D, 그리고 CapEx 투자 비용, life cycle, 그리고 일반 DRAM 제품의 가격 등을 종합적으로 고려해서 최소 연간 베이스로 가격을 협상하고 있습니다. The company negotiates prices on a minimum annual basis, taking into consideration the R&D invested in HBM, capacity investment, life cycle, and the price of general DRAM products. 이러한 결정 방식으로 인해서, HBM 가격의 안정성은 일반 제품 대비 높다고 볼 수 있으며, 향후 HBM 시장이 확대될수록 DRAM 사업의 가격 안정성은 높아질 것으로 예상됩니다. Due to this decision-making process, HBM enjoys relatively, higher price stability. And as the HBM market expands into the future, the DRAM business on the whole can see better price stability as well. 올해는 일반 DRAM 제품의 급격한 가격 상승으로 작년에 비해서는 HBM 가격 프리미엄이, 다소 줄어들 수는 있겠습니다. Now, the price premium for HBM may be less this year than last year, due to the sharp ASP increase in general DRAM. 다만, 올해 신규 출시가 되어 판매가 확대되는 HBM3E는 HBM3 대비 개발 난이도가 증가하고, 투입 비용이 증가되는 점을 고려해서, 가격 프리미엄이 반영될 것이기 때문에, HBM 제품 내의 믹스 변화로 인한, 프리미엄 수준을 유지해 나갈 수 있을 것으로 예상합니다. But at the same time, HBM3E, which is newly released this year and is expanding sales, is expected to reflect a price premium in light of the higher development complexity and input cost compared to HBM3. And we expect to maintain the premium level, thanks to the change in the HBM product mix. 네, 다음 질문해 주십시오. 다음으로 질문해 주실 분은 SK 증권의 한동희 님입니다. The following question will be presented by Dong Hee Han from SK Securities. Please go ahead with your question. 네, 안녕하세요. SK 증권 한동희입니다. 질문 기회 감사드립니다. 저도 두 가지 질문이 있는데요. 첫 번째 질문은 2024년 저희의 이제 투자 규모 관점에서 투자의 영역과 앞으로 저희가 이제 투자에 집중할 수 있는 방향성에 대한 질문이고요. 두 번째에 대한 질문은 저희가 작년에 출하와 가격 관점에서 시장을 크게 아웃퍼폼 했는데요. 높아진 기저에도 불구하고 올해도 좀 같은 모습을 보여줄 수 있다면 그 동력은 무엇일지 의견 공유 부탁드립니다. 감사합니다. Thank you for taking my questions. I also have two. The first is in terms of the company's investment scale this year, for 2024, then what would be the main areas of investment as well as the overall direction for investment? And second, we see that in terms of the shipment price, we see that the company has far outperformed the market last year. So then, if the company believes that this can be maintained this year, then what would be the drivers for such possibility? 네, 먼저 질문 주셔서 감사합니다. 첫 번째, 그 CapEx 관련한 질문에 답변을 먼저 드리도록 하겠습니다. Thank you very much for your questions. I would like to respond to your first part of the question about investment CapEx. To the severe demand slowdown, as we mentioned before, reduced CapEx by more than 50% compared to the previous year and proceeded with the investment. Now, the company to proactively respond to the rapid slowdown in 2023, we reduced our CapEx by more than 50% YoY, as we had communicated to the market earlier. 저희 투자는 과거 투자 수준이나, 연간 감가상각비를 고려하면, 작년 CapEx 규모는 AI향 제품 수요 대응을 위한, 필수 투자를 제외한 전 영역에서 투자비를 대폭 축소한 수준입니다. Compared to our historic investment levels and annual depreciation, last year's CapEx was a significant reduction in all areas, except for essential investment needed to respond to demand for AI products. 올해도 가격이 상승하고, 작년 대비 높은 메모리 수요 증가율이 일단 예상이 되지만, 저희 회사는 올해도 보수적인 투자 기조를 유지할 생각입니다. Now, while we expect higher prices and also higher growth in memory demand this year, we plan to maintain conservative, conservative investment this year as well. 저희는 철저히 그 고객 수요에 기반해서 가시성이 확보된 제품의 생산 확대를 위해서 투자할 계획입니다. 이처럼 성장성과 수익성을 확신할 수 있는 어떤 제한된 영역에 투자를 집중해서 과거처럼 투자 증가가 공급 과잉으로 이어지는 사이클이 되지 않도록 할 생각입니다. We will invest in ramping up production, strictly based on customer demand and when there is clear visibility. By limiting our investments to areas where we are confident of growth and profitability, we will avoid the cycle of more investment leading to oversupply that we have repeatedly seen in the past. 그래서 2024년 투자는 그 AI 수요 증가 대응을 위한, 선단 공정 제품의 양산 확대를 하거나 TSV의 증설이나 필수 인프라 투자 등의 우선순위를 고려해서, 투자를 할 생각이고, 증가분은 최대한 최소화할 계획입니다. So we plan to minimize incremental investment in 2024 by considering priorities, such as expanding mass production of advanced process products to meet the growing demand for AI, expanding TSVs, and investing in essential infrastructure. 2024년 이후의 어떤 투자 방향성에 대해서도 미래 성장에 대한 인프라 준비는 일단 선제적으로 진행할 생각을 가지고 있습니다. The direction of investment beyond 2024 will also be determined by finding the right balance. We will be getting ready for the investment to be made, so that we will be able to preemptively prepare for the future growing infrastructure. 다만, 성장성과 재무구조의 개선 간에 적정한 밸런스를 확보하면서, 투자 수준을 결정해 나갈 생각입니다. So, we will need to find the right balance between growth and financial improvement, as we try to set the course of investment in the future. 네, 그 두 번째 질문인 2024년, 당사 퍼포먼스 전망에 관한 질문 답변 드리도록 하겠습니다. Now, I would like to respond to your question about the company's performance in 2024. deteriorating profitability and high inventory, etc. However, with the full-fledged arrival of the AI era and the launch of high value-added products that meet customer requirements, we were able to quickly achieve a turnaround to profitability, and record a relatively higher ASP increase compared to the industry average. Like other suppliers in 2023, the company also struggled with deteriorating profitability and high inventory. But with the advent of AI, we were able to quickly return to profitability by launching high value products that fulfilled customer needs, and we are able to post relatively high ASP growth than industry average. AI 향 메모리 수요가 본격화되면서, 당사는 앞으로의 경쟁은 물량 기반의 점유율보다는, 고객에게 필요한 가치를 시기적절하게 제공해 주면서, 그에 상응하는 합리적인 가격을 통해, 지속적으로 매출과 이익을 성장시키는 데 있다고 생각합니다. As the demand for AI memory takes off, we believe the competition will be less about volume based market share and more about delivering the value customers need at the right time and at the right price to continue to grow revenue and profitability. 당사는 앞으로도 물량 중심보다는 고부가가치 중심, 매출을 우선시하고, 수익성 점유율 확대에 우선순위를 두고, HBM 시장 외에도 새로운 AI 메모리 제품인 MCRDIMM, LPCAMM2 이러한 제품들 군에 있어서도 신속한 시장 대응을 통해 total AI 메모리 프로바이더로 입지를 강화해 나가겠습니다. Going forward, we will prioritize revenue and profitability centered on value added rather than volume, and strengthen our position as the total AI memory provider by rapidly establishing ourselves in the HBM market and new AI memory products such as MCRDIMM and LPCAMM2. 네, 다음 질문해 주십시오. 다음으로 질문해 주실 분은 한국투자증권의 황준태님입니다. The following question will be presented by Jun Tae Hwang from Korea Investment & Securities. Please go ahead with your question. 네, 안녕하세요. 저는 한국투자증권의 채민숙입니다. 질문 기회 주셔서 감사합니다. 저도 두 가지 질문이 있는데요. 첫 번째는 하이닉스를 포함한 공급업체들의 가동률이 이제 증가하면서 메모리 업턴이 조금 예상보다 일찍 끝날 수도 있다는 시장의 우려가 좀 높아지고 있습니다. 앞서 공급이 제한되는 이유에 대해서 자세히 설명을 해주셨지만, 이 부분에 대해 조금 더 자세한 설명을 부탁드리고, 감산 기조에 대한 회사의 계획도 말씀해 주시면 감사하겠습니다. 두 번째 질문은 지금 CapEx도 올라가는 게 제한된다고 말씀을 하셨고, 이런 상황에서는 메모리 업턴에서 팹 운영이 점점 타이트해질 수도 있다고 생각이 드는데요. 오십살을 포함한 중장기 팹 운영 계획이 어떻게 되시는지 공유해 주시면 감사하겠습니다. Now, I also have two questions. Now, including SK hynix and the other suppliers, it appears that they are gradually increasing the utilization rate, and as a result, there are some concerns in the market that the market recovery might end earlier than expected. And of course, the presenter earlier explained quite well about why supply is going to be limited. But then, can the company also elaborate on this possibility? And also, what is the company's position on the production cut stance? And the second question is, the company also mentioned earlier that any increment in the CapEx is going to be limited, but then, doesn't that mean that as the... in the course of the memory upturn, then the fab operations could become tighter? So, what does the company think about this concern as well? 아, 먼저 질문 주셔서 감사합니다. 첫 번째 질문 주신, 그 메모리 업황 회복에 대해서 일단 답변 먼저 드리겠습니다. Now, thank you very much for your questions. I will answer your question about the memory market recovery. 해당 문제에 대해서는 회사에서도 나름 우려를 하고 있는 부분이기는 합니다. 하지만 그 2022년 말부터 업계에서 진행된 감산은 재고가 많은 어떤 저수익의 어떤 비가시 제품 위주로 진행이 됐고, 이들 제품은 재고가 충분히 이제 소진이 되고 나면, 수익성을 보장하는 가격 수준에 이르기까지는 아마 감산이 유지될 것으로 저는 생각하고 있습니다. Now, what the questioner has mentioned, the concern in the market, that is something that the company is also quite aware of. But having said that, the production cuts we have been seeing in the industry since late 2022 have been mostly in low margin legacy products with high inventories, and we believe the production cuts here will continue until inventories are sufficiently depleted and prices reach levels that ensure profitability. 모두 인지하고 계시겠지만, 올해 그 공급업체들이 생산을 확대하려는 제품 자체가 고객 수요가 증가하고 있는 어떤 고성능, 고용량의 DDR5나 AP, DDR5 및 HBM과 같은 고부가가치 제품입니다. I'm sure that we are all fully aware that where the suppliers are looking to expand production this year are in high value add products such as high performance high content DDR5, LPDDR5, and HBM, where customer demand is growing. 그 말씀드렸던 이런 제품들은, 감산 대상인 레가시 제품에 비해서는 다이 사이즈가 크다는 특징을 가지고 있고요. 또 특히 HBM은 다이 사이즈가 동일 용량의 어떤 DDR 제품에 대비해서 약 두 배 정도 큰 수준이기 때문에, HBM의 웨이퍼 투입을 늘리더라도, 완제품 생산 증가율은 상대적으로 좀 제한적입니다. Now, unlike the legacy products that are subject to cuts, these products are characterized by large die sizes. In particular, HBM has a die size that is approximately twice as large as DDR of the same capacity. This means that even if we put in more wafer for HBM, we will not get equal increase in the finished products. 저희 회사는 지금, 수요가 많은 제품의 공급은 늘리고, 반대로 수요가 낮은 제품은 생산을 늘리지 않는다는 원칙을, 유지해 오고 있습니다. The company has maintained a principle of increasing supply of high demand products, but not increasing production of low demand products. 고객과의 어떤 신뢰에 기반한 문제이기도 하지만, 현재 공급이 부족한 고성능, 고용량 DDR5, 그리고 LPDDR5, HBM과 같은 고부가가치 제품으로 분류되어 있는 제품에 대해서는 생산을 늘려 고객들의 요구에 지금 대응하겠지만, 수요가 적고 재고 소진이 필요한 부분은 감산 기조를 유지할 것입니다. Now, this also has to do with our trust with our customers, so we will respond to customer demand by increasing production of high value add products such as high performance and high capacity DDR5 and LPDDR5, as well as HBM, which are currently in short supply. But we will maintain a production reduction stance in areas where demand is low and inventory needs to be lowered. 실적 발표에서도 말씀을 드렸지만, 뭐, 이 같은 업계의 동향이나 당사의 계획을 고려할 때, 2024년에 어떤 생산 증가율은 제한적일 것으로 예상되고 있고, 그리고 메모리의 업황은 그에 따라서 개선세가 지속될 것으로 판단하고 있습니다. As was mentioned during the briefing, given these industry trends and our plan, we expect production growth in 2024 to be limited, and thus, the memory market improvement will continue. 두 번째 질문 주신, 중장기 팹 운영 계획에 대해서 답변드리겠습니다. Now, moving on to the second part of your question about the mid- to long-term fab plan. 여전히 지금 감산이 이제 진행되고 있는 상황이고, 이런 상황에서 팹의 운영이, 타이트해지는 어떤 시점을 대비해야 한다는 거는, 회사로 봐서는 상당히 행복한 고민이 아닐 수가 없습니다. With production cuts still ongoing, I must say it is a happy problem to have, how to prepare for the time when fab operations become tight. 하지만 메모리 산업이 통합 이후에 안정적으로 성장할 것으로 믿어온 어떤 이천이십삼년과 같은 극심한 다운턴을 겪은 지금은 과거와는 조금 다른 시각으로 미래를 좀 바라보고 투자를 결정할 수밖에 없다고 생각합니다. However, after expecting steady growth in the memory industry after consolidation, only to experience an extreme downturn like we did in 2023, I believe it now warrants a different perspective in thinking about future investment. 고객들의 니즈에 부합하는 어떤 다양한 제품의 리더니스를 확보하고, 이를 시의적절하게 공급함으로써 고객에게 어떤 차별화된 가치를 제공하는 데 집중하는 한편, 과거에 비해서는 그 급속도로 증가하는 어떤 투자 비용을 부담하기 위해서는 적적 수익성과 수요의 가시성이 보장된 영역 중심으로 투자 의사결정을 해야 한다고 저희들은 판단하고 있습니다. On one hand, we need to focus on providing differentiated value to our customers by ensuring the readiness and timely delivery of the various products that meet their various needs to bear the rapidly rising investment costs. But also, at the same time, we need to focus our investment decisions in areas with adequate profitability and visibility in demand. 예, 당사는 확실한 경쟁 우위가 있는 제품 중심으로 투자 확대를 전개할 계획이고, 이를 위해서 한동안은 현재 보유하고 있는 M15와 M16 팹에 남아있는 공간을 활용할 계획입니다. That is why we plan to focus our investment on products where we have a clear competitive advantage, and plan to utilize the remaining space in the current M15 and M16 fabs for the next few years. 과거와는 달리 Capa 증가를 위한 투자보다는 밸류 제공을 위한 전환 투자에 집중해서 클린룸 공간, 공간을 최대한 효율적으로 활용할 생각입니다. Unlike in the past, we will focus on migration investments to deliver value rather than to increase capacity, and try to make the most efficient use of our clean room space. of products such as DDR5, FD, LPDDR5, etc., through the one-way nanometer conversion, and to maximize the utilization period, we are thinking in the direction of extending it. Under this principle, the Wuxi fab will also eventually enable mass production of products such as DDR5 and LPDDR5 by migrating to 1a nanometer to extend the utilization period as much as possible. 네, 다음 질문해 주십시오. 다음으로 질문해 주실 분은 JP Morgan의 제이 권 님입니다. The following question will be presented by Jay Kwon from JP Morgan. Please go ahead with your question. 네, 질문 기회 주셔서 감사합니다. 저도 두 가지 질문이 있는데요. 일단 첫 번째는 저희 그 HBM 시장의 수요 증가율을, 어느 정도로 현재 전망하고 계시는지 부분이고, 저희 올해와 내년에 지속적으로 HBM Capa 확대를 하게 되면서, non-HBM 일반 DRAM 제품 응용처의 수급은 어떻게 변화될 것으로 좀 보시는지 궁금합니다. 두 번째는 작년 저희 메모리 시장이 이제 성장이 AI 서버 쪽이었다면, 올해 이제 온디바이스 AI 수요 확대가 좀 많이 보이는데요. 이게 저희 메모리 수요 DRAM에 어떻게 영향을 준다고 보시는지, 말씀 부탁드립니다. 감사합니다. I also have two questions. First is about the HBM demand. So what is the company's projection for the demand growth rate for HBM this year? Then also, it seems as if the HBM capacity has been rising from last year, and also will continue so into this year and next. Then, what about the non-HBM, in other words, the general DRAM applications? So what does the company expect the demand and supply dynamics to be for the non-HBM DRAM applications? And the second part of your question is about the on-device AI. We have seen the demand moving a lot from the AI server also to the on-device AI. And what does the company expect this to be in terms of the impact on the memory semiconductor demand? 먼저 첫 번째 질문인 HBM 수요 전망에 대해 답변드리도록 하겠습니다. Thank you. Now, I will first respond to the first part of your question about the HBM. HBM은 AI 그리고 딥러닝 등 방대한 양의 데이터를 고속 처리하는 데 최적화된 메모리인 만큼, 초거대 기반 AI 챗봇, 그리고 CSP 업체들의 기존 플랫폼과의 결합 시도, 그리고 온디바이스 등으로 배후 수요가 점차 확대되고 있습니다. Now, HBM is memory optimized for high-speed processing of massive data in AI and deep learning. Demand is gradually expanding for ultra-large scale AI chatbots for CSP companies trying to combine it into their existing platforms, and also for on-device use. 최근 기업들의 AI 도입과, 개인의 AI 수용도 증가로 HBM 수요 성장세는 보다 명확해 보입니다. 이에 당사는, 중장기 연평균 약 60% 수준의 수요 성장을 예상하고 있습니다. We see that there is clear demand growth for HE, HBM recently, with increasing adoption of AI by companies and also increasing acceptance among individuals of AI. Based on demand visibility, the demand growth is expected at 60% per annum for the mid- to long-term. 또한, AI 상용화 수준과, 신규 응용처 확대로 업사이드 포텐셜까지 고려하면 그 성장률은 추가 확대될 것으로 전망합니다. There is even some upside potential, such as the extent of AI commercialization and expansion into new applications, which, if they do happen, will accelerate growth further. 앞서도 언급된 바 있습니다만, HBM의 경우, 일반 DRAM 제품 대비 동일 생산량 양산을 위해 요구되는 Capa가 최소 두 배 이상 증가합니다. 따라서, Capa를 늘리지 않는다고 가정한다고 하면, HBM 생산을 늘릴수록 일반 DRAM의 할당 가능한 웨이퍼 Capa는 상당히 축소되기 때문에, HBM 양산 확대 수준에 따라서 일반 DRAM의 수급이 매우 타이트해질 가능성이 있습니다. Now, it was also mentioned earlier, but for HBM, the required capacity is at least twice as high to produce the same volume as conventional DRAM. Which means that, if there is no capacity increase, the availability of wafers for conventional DRAM would shrink significantly with HBM production ramp up, potentially leading to very tight supply and demand for conventional DRAM, depending on the level of HBM volume expansion. 다음으로 두 번째 질문인 온디바이스 AI 수요 관련, 문의에 답변드리도록 하겠습니다. Let me now move on to the second part of your question, which was on the demand for on-device AI. 온디바이스 AI 기능이 적용된 AI PC, 그리고 AI 스마트폰은 앞으로 메모리 반도체 수요를 촉발하는 새로운 기폭제가 될 것으로 보고 있습니다. 단말 기기에서 AI 서비스를 지원하기 위해서는 기본적으로 고성능, 고용량의 하드웨어 성능이 뒷받침되어야 되기 때문입니다. AI PCs and AI phones with on-device AI capabilities are expected to become the new catalyst or new driver for memory demand in the future. Because to support AI services on the device requires high performance and high capacity hardware. 응용별로 차이는 있겠지만, 온디바이스 AI 수요로 인해 기본적으로 현재 채용량 대비 기기당 탑재량이 증가할 것으로 기대하고 있습니다. Of course, there would be some differences by application, but, basically, we expect to see an increase in content per device, thanks to demand for on-device AI. existing PCs, approximately two times or more DRAM capacity needs to be mounted, and in the case of AI smartphones, compared to existing smartphones, at least 4 GB or more of DRAM capacity will be needed additionally. AI PCs are expected to have more than double the DRAM capacity than traditional PCs, and similarly, AI phones will need at least 4 GB of additional DRAM. customer companies' active on-device AI application launches, the related market is expected to blossom from 2024, but substantially, shipment volumes are expected to expand significantly from 2025 onwards. Now, the market will begin to bloom in 2024 as customers actively launch products with on-device AI capabilities. But it will not be until 2025 that we will see real increase in shipments. 특히나 그 온디바이스 AI 기능을 적극적으로 활용하는 킬러 어플리케이션이 출연하게 된다면, 성숙기에 접어든 PC 또는 스마트폰 시장에서 중장기 수요의 추가적인 성장을 견인할 수 있을 것으로 생각합니다. What is noteworthy is that, should there be killer applications that actively use on-device AI capabilities, they can drive additional mid- to long-term demand growth in the already mature PC and smartphone markets. 네, 다음 질문해 주십시오. 다음으로 질문해 주실 분은 골드만 삭스 증권의 이준희 님입니다. The following question will be presented by Giuni Lee from Goldman Sachs. Please go ahead with your question. 네, 좋은 실적 축하드리고 질문 기회 감사드립니다. 저는 낸드 질문 하나, HBM 관련 하나가 있습니다. 첫째로, 최근 낸드 가격 회복으로 낸드 업체들의 수익성 개선이 진행되고 있는데, 하이닉스의 낸드 흑자 전환 예상 시점이 궁금하고요. 장기적인 관점에서 회사의 낸드 수익성 개선 방안을 공유해 주시면 감사하겠습니다. 두 번째 질문은 HBM 관련인데요. 뭐, 앞에서도 좀 언급된 부분이 있기는 한데, 빠르게 성장하는 AI 관련 수요 대응을 위해서 그 메모리 업체들이 상당한 규모의 HBM Capa 증설 계획을 가지고 있는데, 관련해서 올해 이후 공급 과잉에 대한 일부 시장 우려가 있는 것 같습니다. 이에 대한 하이닉스의 의견 부탁드리겠습니다. 감사합니다. Congratulations on the good performance! My first question... I also have two questions, one on NAND, another on HBM. Now, with the recent recovery in the NAND prices, we see that the NAND suppliers' profitability has also improved quite a lot. Then, in relation to this, when does SK Hynix believe that its NAND business can turn around to profit? And also in relation to this, what are, for the short term, the specific ways that the company plans to improve NAND profitability? And the second question is on HBM. Now, the memory makers are increasing the HBM capacity quite rapidly in order to meet the growing demand coming from AI, which also is now leading to some concerns about possible oversupply after 2024. And what is the company's position regarding this scenario? 네, 그 첫 번째, NAND 질문 감사합니다. 그 NAND는, 지난 일 년여 이상 공급사들의 그 고강도 감산에 따른 이제 공급 감소 영향이 이제 실질적으로 가시화되면서, 작년 사분기부터, 가격 상승에 따른 수익성 개선이 이제 본격적으로 보이고 있습니다. Thank you very much for your questions. Now, in NAND, we are indeed starting to see the impact of supply reduction following intense production cuts, with profitability starting to improve, thanks to higher ASPs from Q4 last year. 2024년에도 그 수요단에서는 점진적으로 수요가 회복될 것이고요. 그다음에 공급단에서는 이제 업계의 보수적인 생산 기조가, 당분간 계속 유지되면서, 가격 상승세는 지속적으로 이어질 것으로 전망하고 있습니다. 당사는 작년에 이어 올해도 보수적인 투자 기조를 유지하고, 비용 최소화를 통해서 원가를 계속 지속적으로 절감해 나갈 것입니다. We expect the price rise to continue in 2024, with gradual recovery in demand and the industry staying in conservative production. For the company, we will keep working to reduce costs by maintaining conservative investment and minimizing expenses this year. 이 과거 대비 NAND가 그 3D 적층수 증가로 인해서 자본 집약도가 매우 빠르게 증가하고 있는 것에 비해서, 수요단에서는 그 가격 탄력성에 의한 그 수요 성장의 속도는 둔화되고 있습니다. 그래서 회사 입장에서는 그 효율적인 투자 집행이 어느 때보다도 중요해지고 있는 상황입니다. For NAND, in particular, we see that it is fast becoming more capital intensive due to the higher 3D stacking required. While demand growth coming from price elasticity is slowing, which means efficient investment is more important than ever before. 따라서 회사는 투자 최적화와 수익성 확보, 이 두 가지를 NAND의 최우선 과제로 삼고 있습니다. 장기적으로는 이 투자 효율성 개선 노력과 함께, 제품 믹스, 즉 프리미엄 제품 라인업 강화를 통한, 프리미엄 라인업을 강화해서, 전체적인 그 판가 개선에 힘을 쓰도록 할 것입니다. 그래서, 시황이 변동하더라도 꾸준한 수익성을 확보할 수 있는 구조로, 발전해 나가도록 하겠습니다. That's why for the company, optimizing investment and securing profitability are our top priorities for NAND. We will try to develop a structure that can ensure profitability even under market fluctuations. To that end, we will try to improve investment efficiency and boost ASP by strengthening our premium product lineup over the long term. 두 번째로 HBM Capa 관련 질문 답변드리도록 하겠습니다. Let me now respond to your question about the HBM capacity. 현재 AI 시장은 그 AI 디바이스 및 서비스 등을 구현하기 위해서 AI 인프라를 구축하는 초기 단계이고요. 메모리는 시스템 성능 최적화 측면에서, 하나의 pain point이자 selling point로서 AI 인프라에서 핵심적 역할을 수행하고 있습니다. The AI market that we see now is in the early stage of building AI infrastructure to deploy AI devices and services. Now, in this process, memory is critical in AI infrastructure as both the pain point and also the selling point in terms of optimizing system performance. AI 모델은, 학습용 서버의 지속적인 업그레이드와 이후 각 업체 및 서비스에 맞는 fine- tuning, 그리고 multimodal 등으로 진화가 예상되고, 출원 단계에서도 고품질의 서비스 latency 확보를 위해서, 고성능 서버를 출원에도 활용하는 고객도 있는 만큼, inference 서버 확대 또한 HBM 수요에 긍정적으로 작용할 것으로 보고 있습니다. For AI models, continued server upgrades are expected for training purposes, followed by fine-tuning for each company and service, as well as multimodal evolution. Some customers are utilizing high-performance servers for inference as well, to ensure high-quality service latency. Given this, expansion of inference servers will also have a positive impact on HBM demand. Now, in 2024, the HBM market is still going to be driven by demand growth from large customers, but at the same time, we expect to see diversification in the sources of demand as the big tech companies compete for AI leadership, and also CSPs develop their own projects that also require the adoption of HBM. Now, on the supply side, unlike conventional memory, HBM has a nature that is similar to order-based business, with capacity being determined in consultation and contract with customers at least one year in advance. That means that we can remain cautious in investment and respond to supply in line with expected demand levels this year and beyond. Now, with this continued growth in demand for HBM and the growth momentum for AI likely to continue, I must say that we don't see much cause of concern for oversupply. The last question will be presented by Sei Cheol Lee from Citigroup. Please go ahead with your question. This is also a two-part question. First is on NAND. Now, we see that NAND profitability has improved quite a lot in Q4, so what were the factors that enabled this? And also, in the briefing, it was mentioned about the inventory, the reversal in the inventory valuation loss. Could you also specify the size of the reversal? And the second question is more on the long-term strategic direction. Now, in the CES, that was held in November this year, the company's president, Kwak, he has mentioned that the company will introduce a customized memory platform to provide customer-specific AI memory solutions in response to diversifying customer needs. Then why does the company believe that such diversification of memory products is occurring? And also, the need for customized memory, why does the company believe that there is a need for this? And also, what is the strategy for providing customized memory platform? Thank you for your questions. I would like to first respond to your question about the reasons behind the improved NAND profitability. Uh, Now, first of all, NAND in the fourth quarter was driven by strong ASP growth QOQ, thanks to price recovery driven by industry production cuts and improved customer demand, as well as a shift away from lower margin products and more towards premium products. 4분기 NAND 가격이 본격적으로 이제 상승함에 따라서 LCM 평가에 따라서, 기존에 인식한 재고 평가 손실 충당금에, 일부 환입이 있었습니다. 그 규모는 4분기에 KRW 400 billion-KRW 500 billion 정도 수준입니다. As NAND prices began to increase in Q4, there was reversal in part of the inventory valuation loss based on LCM valuation, which was approximately KRW 400 billion-KRW 500 billion in Q4. 당분간 가격 상승 기조 자체가 유지될 것으로 보이기 때문에, 올해에도, 올해에는 재고 평가 손실 충당금의 환입에 따라서 실적에 긍정적인 영향이 있을 거라고 생각은 하고 있습니다. With the prices expected to keep rising in the foreseeable future, the reversal of the inventory valuation loss is expected to have a positive impact on our business results this year. 네, 두 번째로 고객 맞춤형 메모리에 관한 질문 답변드리도록 하겠습니다. Now, I would like to respond to your question about the customized memory platform. AI 시대의 본격적인 도래가, 메모리 제품 다변화와 맞춤형 메모리 확산의 주요 배경이 되었다고 생각합니다. Now, I would first point to the advent of the AI era as the major driver of memory diversification and the proliferation of customized memory. 몇 년 전만 해도, HBM 시장의 성장 속도가 이렇게 빠르게 성장할 것이라고 예상할 수 없었던 것처럼, 현재 우리 주변에서 일어나고 있는 AI 기술의 발전은 기대 이상으로 빠르게 진행되고 있습니다. 이로 인해서 앞으로 다양한 형태와 특성을 가진 메모리 제품이 출현하고 성장할 것으로 보입니다. Just as we couldn't have predicted how fast the HBM market would grow a few years ago, advancements in AI technology that we are seeing today are moving faster than anyone could have imagined, and we expect to see memory products of all shapes and sizes emerge and grow in the coming years. AI 시스템이 발전되면서, 시스템의 성능은 메모리 성능에 많이 귀결되고 있습니다. 고객들은 개별 제품 및 서비스에 최적화된 맞춤형 메모리를 적극 요구하고 있습니다. As AI systems continue to develop, their performance is increasingly dependent on memory performance, and customers are actively requiring customized memory that is optimized for individual products and services. 현재 당사는 AI 양 솔루션을 위해 HBM과 고용량 DDR5 모듈을 주력으로 제공하고 있습니다. 고성능 서버 모듈인 MCRDIMM, 저전력 모바일 모듈인 LPCAMM2 등을 포함한 다양한 제품 라인업을 준비하고 있어, 앞으로 다변화될 고객들의 요구에 대응할 예정입니다. The company is now focusing on HBM and high-capacity DDR5 modules for AI-oriented solutions. We are preparing a diverse product lineup, including MCRDIMM, which is a high-performance server module, and LPCAMM2, a low-power mobile module, to meet the diversifying needs of our customers into the future. 또한 중장기적으로는, PIM, CXL 등 차세대 제품에 대한 개발도 진행 중으로, 당사는 계속해서 고객과의 적극적인 협업을 통해 고객 니즈에 맞는 최적의 메모리 솔루션을 확보해 나가겠습니다. For the mid to long term, development and preparation are already underway for next-generation products, such as PIM and CXL, and we will keep active collaboration with our customers to secure the optimum memory solutions for their needs. 네, 그럼 이상으로 SK하이닉스 2023년 사분기 개요 실적 컨퍼런스 콜을 모두 마치겠습니다. 감사합니다. Thank you very much. With that, we conclude the earnings release conference call for SK Hynix 2023 Q4. Thank you.