SK Hynix Q2 revenues up 70% to record KRW 6.7 trillion

SK hynix reports record quarterly earnings

SK hynix reports record quarterly earnings

SK Hynix generated net profits of KRW2.47 trillion in the second quarter of 2017, up 30% sequentially and a significant 763% on year.

Experts said rising demand for memory chips around the world amid a supply shortage will allow SK Hynix to enjoy an operating profit of almost 3.5 trillion won in the third quarter.

SK hynix said its shipment and average sales price of DRAM chips advanced 3 percent and 11 percent, respectively, from the previous quarter on the back of expanded sales of server DRAM products.

The world's second-biggest memory chip maker behind Samsung Electronics Co Ltd said April-June profit was 3.1 trillion won (US$2.78 billion).

It said it would expand capacity by 3 to 5 percent this year to meet demand, prompting it to consider raising 2017 capital expenditure plans from 7 trillion won by an unspecified amount.

In the second half of the year, SK Hynix said it aims to consolidate its position in the memory market with a product portfolio centered on server and mobile applications, the strongest growing segments of the market.

Operating profit also advanced 573.7 percent to reach a record 3.05 trillion won.

Another market research firm IHS Markit said through its recent report, "The worldwide memory chip market will expand from US$78.3 billion (87.9 trillion won) last year to US$111.6 billion (125.27 trillion won) this year".

Moreover, SK Hynix is planning to construct its new DRAM production plant in Wuxi, China, and NAND plant in Cheongju, Korea, but it is considering ways to advance the completion from the first half of 2018 to the fourth quarter of 2018. Sales came to an all-time high of 6.69 trillion won in the April-June period, advancing 69.8 percent from previous year. It will also begin manufacturing 3D NAND flash in full scale from the new M14 fab and supply mobile solutions and client solid state drives (cSSDs) in 72-layer 3D NAND by the end of the year, followed by enterprise solid state drives (eSSDs) next year. SK Hynix said evolving technology such as cloud computing has increased the chip count of an internet data server by 70 percent or more.

By strengthening its foundry business, SK Hynix also seeks to jump up to be a leading global player in system semiconductor, which is non-memory sector. SK Hynix ranks 27th in the foundry market with a mere 0.2 percent of the share.

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