SK Hynix saw 84% surge in profit for 2020
South Korean memory chip maker SK Hynix said on Friday it has recorded 31.9 trillion won in sales and 5 trillion won in operating income for the entire year of 2020.
It is a rise of 18% and 84%, respectively, from 2019.
The South Korean memory chip maker started supplying products, such as 10nm DRAM and 128-layer NAND flash, in 2020 which increased its market share in the server market and subsequently led to the increases, it said.
This was despite the pandemic and global trade disputes slowing down the memory market, the company said.
Looking at the fourth quarter, SK Hynix posted 7.96 trillion won in sales and 965.9 billion won in operating profit, a rise of 15% and 298%, respectively, when compared to the same period a year ago.
Demand for memory products from the mobile sector, which started to rise in the third quarter, continued to grow during the fourth quarter, the company said.
For 2021, SK Hynix expects higher demand for server products from customers commencing investments into new data centres.
The company also believes 5G smartphone shipments, which slowed in 2020 due to the pandemic, will recover and demand for memory will increase as well.
SK Hynix will begin producing next-generation 10nm DRAM and 176-layer NAND flash this year to increase its competitiveness amid these trends, the company said.