Memory manufacturers found themselves in a favorable position during the inception period and in the first quarters of the spread of the SARS-CoV-2 coronavirus. Quarantine, self-isolation and remote work have led to increased demand for remote computing platforms and increased consumption of computer memory. SK Hynix as during the quarterly report, was able to triple the quarterly operating profit in a year.
According to SK Hynix's quarterly report released this morning, the company generated 2020 trillion won ($8,607 billion) in revenue in the second calendar quarter of 7,2. Its operating income was 1,947 trillion won ($1,63 billion) and net income was 1,264 trillion won ($1,06 billion). The uncertainty of the business environment caused by the coronavirus did not prevent SK Hynix from consistently (quarterly) increasing revenue by 20% and operating profit by 143%. During the year, quarterly operating profit tripled.
It should be noted that not only the coronavirus helped improve the financial performance of SK Hynix, but also an increase in product yield (reduction in the level of defects in memory production) and a concomitant cost reduction.
Weak demand for smartphone memory was more than offset by strong demand for server and graphics memory. The company's DRAM output growth in the second quarter was 2% in terms of capacity and at the same time recorded an increase of 15% in the average selling price of memory.
In the NAND flash memory business, production volumes per bit increased by 5%, and the average selling price increased by 8%. The company also announces the achievement of a record result: for the first time, the SK Hynix branded SSD business brought in more than 50% of revenue in the production of NAND flash and products based on it.
In the second half of the year, the company expects continued uncertainty due to the coronavirus and trade wars, but the release of new consoles and the spread of 5G networks gives it confidence in a good deal for the memory business.
SK Hynix's production plans include expanding the supply of 10 nm class mobile DRAM, including the most advanced LPDDR5 DRAM. In the field of server memory, the company intends to offer modules with a capacity of over 64 GB, which will be helped by a further transition to the production of DRAM chips with standards of the 10 nm class of the 1Znm generation. In the production of NAND chips, the company will shift the focus to 128-layer 3D NAND chips, which will positively affect profitability. Overall, SK Hynix exudes optimism. Let's see how it will actually be.
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Source: 3dnews.ru