SK Hynix Q2 Operating Profit 1.95 Trillion KRW... 205.3% Increase YoY (Update)

[Asia Economy Reporter Dongwoo Lee] SK Hynix announced on the 23rd that it recorded provisional results for the second quarter of 2020 with sales of 8.6065 trillion KRW and an operating profit of 1.9467 trillion KRW.

Sales increased by 33.4% and operating profit increased by 205.3% compared to the same period last year.

DRAM shipments increased by 2% compared to the previous quarter, and the average selling price rose by 15%. Although demand from mobile customers remained sluggish, sales of server and graphic products, which had relatively strong demand and prices, increased.

NAND flash shipments increased by 5%, and the average selling price rose by 8%. Actively responding to the favorable price trend and SSD demand, the proportion of SSD in the NAND business approached 50% for the first time.

SK Hynix forecasted that uncertainties would remain in the second half of the year due to COVID-19 and global trade disputes. However, with partial economic activity resuming in major countries, it expected demand improvements in 5G smartphone demand and game consoles with scheduled new product launches.

The company stated that it would operate products focusing on profitability based on quality competitiveness. Facility investment and capacity operation will maintain a conservative stance according to the existing plan.

For DRAM, SK Hynix plans to continue improving profitability by expanding sales of 10nm-class 2nd generation (1Y) mobile DRAM and supply LPDDR5 products, which have begun full-scale adoption, in a timely manner. Additionally, it plans to expand sales of high-capacity server products of 64GB or more and to begin full-scale mass production of 10nm-class 3rd generation (1Z) products.

For NAND flash, the company plans to respond to mobile and game console demand and strengthen server business capabilities through customer diversification. In particular, it aims to continuously improve profitability by expanding customer certification of 128-layer products.

Jinseok Cha, CFO of SK Hynix, said, “We will flexibly respond to changes in the external environment in the second half of the year and lay the foundation for sustainable growth.”

This content was produced with the assistance of AI translation services.