SK Hynix posts record Q1 profit on mobile chip demand

SK hynix posts record high Q1 earnings as DRAM prices surge

SK Hynix posts record high earnings in Q1 on chip price hikes

Memory manufacturer SK Hynix has just announced that it will start manufacturing the first 8 GB chips of GDDR6 GRAM memory at its 20 nm node in order to begin marketing it to a customer (it has not revealed its name) next year 2018.

According to a source, SK Hynix said that its upcoming 8Gb memory chips will be manufactured using the 2Xnm process technology, which means anywhere between 20nm and 29nm. The operating margin for the quarter was 39 percent and net margin was 30 percent, it said.

The report was an earnings surprise as the beginning of the year is not typically a high season for chipmakers.

The reality is that, as of today, no graphics card is seen lacking bandwidth in the graphic section and in storing textures in their memory chips.

"Although demand for semiconductors has traditionally been weak in the first quarter, our earnings were boosted thanks to a steep price increase that continued from the end of a year ago", the company said in a statement Tuesday.

SK Hynix' revenues increased 17% sequentially in the first quarter of 2017, while operating profits surged 61% compared to the previous quarter. The price remained stable until the end of March. Hence, the demands for NAND flash memory chips have risen recently along with the popularity of various wireless gadgets.

The firm attributed the increasing prices of DRAM chips to the robust profits in the first three months.

Regardless of the ongoing bid for Toshiba's NAND flash unit, SK hynix will invest a total of 7 trillion won in the 3-D NAND flash business for the year as initially planned, a company official said.

SK hynix, whose flagship products are DRAM and NAND flash memory, joined the bidding race in February. It has emerged as a cash cow for chipmakers in recent years for its competitive edge over DRAM both in terms of function and cost. They expect stronger figures in the second quarter, predicting the company could reap as much as 10 trillion won in operating profit for full 2017.

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