SK hynix's Q2 2020 operating profit of 1947 trillion won! A year-on-year increase of 205%

Although the COVID-19 epidemic has increased the uncertainty of the business environment, SK hynix's operating income and net profit increased by 20% and 143%, respectively, and 33% and 205% year-on-year. The reason is that the surge in demand for server memory has maintained a good memory price, and many factors, including the increase in the yield of major products, have reduced costs.

For DRAM, although mobile customer demand continues to be weak, SK Hynix has managed to increase sales of servers and graphics products due to market demand and prices remaining stable. As a result, DRAM shipments and average selling prices increased by 2% and 15% respectively from the previous month; for NAND flash memory, SK Hynix actively responded to the demand for SSD products. With favorable price flows in the market, the company's SSD business accounted for nearly 50% of the NAND flash memory business for the first time. As a result, NAND flash memory chip shipments and average selling prices increased by 5% and 8% respectively.

In addition, SK Hynix made a forecast for the second half of the year. The company believes that with the partial restart of economic activities in major countries, the planned launch of 5G smartphones and next-generation game consoles will stimulate component demand growth. Therefore, SK Hynix will focus on profit-oriented product management based on the competitiveness of its product quality, while maintaining the conservative plan for capital expenditure and capacity operations recommended in the previous quarter.

Cha Jin-seok, vice president and chief financial officer of SK hynix, said: “The company will flexibly respond to changes in the external business environment and lay the foundation for sustainable growth in the second half of the year.”

In DRAM products, SK Hynix will expand the sales of 1Ynm mobile DRAM to increase profitability, and promptly supply LPDDR5 DRAM products to markets that have begun to fully adopt the product. At the same time, the company will focus on expanding sales of high-capacity server products exceeding 64 GB, and start mass production of 1Znm DRAM products; in NAND Flash products, the company will not only meet the needs of mobile and game consoles, but also To diversify the customer portfolio to enhance the competitiveness of the server product business. Specifically, SK Hynix will expand the customer qualifications of 128-layer NAND flash memory products to ensure continuous improvement in profitability.