SK Hynix Q1 revenue up from DRAM demand

SK Hynix benefited from other suppliers transitioning to mobile products as it helped meet demand from existing customers still wanting PC and server DRAM components. This helped the chipmaker register a first quarter revenue of 2.78 trillion won (US$2.5 billion), according to the company.

In a statement issued by SK Hynix Wednesday, its first quarter revenue increased 2 percent from the previous quarter's 2.72 trillion won (US$2.43 billion) despite the quarter being the industry's "traditional off-season".

Operating profit also improved to 317 billion won (US$282.7 million) from the previous quarter's 55 billion won (US$49.1 million) as the company's process technology migration and yield improvement had increased profitability of both DRAM and NAND flash products. Net income for the quarter was 179 billion won (US$159.7 million), which increased 9 percent from the last quarter's 164 billion won (US$146.3 million), it stated. 

The company benefited from the upturn in PC and server DRAM demand, which saw its shipment increase 3 percent and average selling price increase 4 percent. The rise in demand for the component was primarily for data centers, while the increase in price was "largely increased due to the limited supply caused by the [other] suppliers' transition to mobile products", it noted.

Going forward, it plans to strengthen its market competitiveness by focusing on mobile products such as mobile DRAM and eMMC. It will also embark on a tech migration to 20 nanometer for all its DRAM products and 10 nanometer for NAND flash products in the second half of this year, it revealed.