SK hynix, South Korea’s second-largest chipmaker, said Wednesday its first-quarter net profit jumped 52.9 percent from a year earlier thanks to strong demand for memory chips for mobile and computer products.
Its net profit stood at 992.6 billion won ($893.9 million) in the first quarter of the year, compared with a net profit of 649 billion won a year earlier, the company said in a regulatory filing.
Operating income for the January-March period was 1.32 trillion won, up 65.5 percent from a year ago, while sales rose 18 percent to 8.49 trillion won.
Compared with the fourth quarter of 2020, its operating profit surged 37.1 percent, while sales climbed 6.6 percent.
“Although the first quarter is usually off-season for the semiconductor industry, the market conditions improved as demand for memory products for PCs and mobiles increased,” SK hynix said. “In addition, cost competitiveness has increased as yields of major products have improved.”
SK hynix said its DRAM bit shipment increased by 4 percent quarter-on-quarter as it focused on mobiles, PCs and graphics for sales.
For NAND flash, the company said the bit shipment increased by 21 percent compared with the previous quarter.
The chipmaker said it is “optimistic” about the market conditions after the first quarter.
“We expect the inventory of customers to decrease quickly as current stronger-than-expected demand growth in the broader IT market continues,” it said.
In the DRAM sector, SK hynix said it plans to start supplying high-capacity multi chip package based on 12GB DRAM products in the second quarter and decided to increase the production volume of the third-generation 10-nanometer (1znm) DRAM.
The company also plans to finish developing the fourth-generation 10-nanometer (1anm) DRAM technology using extreme ultraviolet (EUV) equipment within this year and begin mass production of the product.
For NAND flash, SK hynix said it will increase the 128-layer product mix to increase the sales of enterprise solid state drives and aims to mass-produce 176-layer products within this year. (Yonhap)