SK Hynix said on Wednesday its operating profit for the first quarter more than doubled from a year ago on the back of a smaller-than-expected decline in memory chip prices, despite the quarter being a traditionally low season. low demand.
The South Korean chipmaker posted revenue of 12.16 trillion won and 2.86 trillion won in the quarter, up 43% and 116%, respectively, from a year ago. This is the company’s best performance for the January-March period to date.
As demand for computer products slowed and supply chain issues persisted in the first quarter, SK Hynix said it responded flexibly to demand for memory chips and focused on managing the profitability.
However, the company’s latest revenue also includes a one-time provision of 380 billion won to cover the cost of exchanging DRAM chips it provided to a customer due to quality issues.
Meanwhile, the chipmaker said the overall memory market is expected to show steady growth going forward with less volatility than in the past.
Demand for server chips was on the rise and memory chip market conditions were expected to become increasingly favorable in the second half of the year, the company said.
Although there have been some minor issues in procuring manufacturing equipment due to chip shortages, SK Hynix said its development cycle for next-generation products is currently on schedule.
The chipmaker added that it is improving the yield rate of its latest high-end chips, 10nm DRAM and 176-layer NAND, and increasing its production volume to meet demand.