SK Hynix posts record profits on rising demand

 26 Oct 2017 - 9:29

SK Hynix posts record profits on rising demand
File Photo: Reuters.

AFP

Seoul: South Korean chipmaker SK Hynix posted record profits in the third quarter, it said Thursday, fuelled by strong demand for its memory chips coupled with rising global prices. 

In a statement, SK Hynix said it made net profits of 3.06 trillion won ($2.7 billion) in the three months to September, up 411 percent from the same period last year.

The company is a major supplier of memory chips to US smartphone giant Apple, and both firms, along with Dell, are part of a global consortium led by US investor Bain Capital that earlier this week signed a $18 billion deal to buy Toshiba's chip business.

SK Hynix said its shipments of DRAM chips -- commonly used for smartphones -- were up 17 percent, with sale prices six percent higher from the previous quarter, "due to an increase in seasonal demand for mobile products".

For NAND flash memory chips, shipments rose 16 percent following a flurry of new devices launched by smartphone makers, although prices dropped three percent.

Operating profits reached 3.74 trillion won, a 415 percent jump from a year ago, and its revenue soared 91 percent to 8.1 trillion won.

The company forecast favourable conditions would continue, adding it "will place its focus on server and mobile products, which are expected to lead the market demands".

Despite the figures, a record for any quarter, SK Hynix shares were down 2.82 percent at 79,400 won in afternoon trading.