Q4 2019 Revenue 6.9 trillion won, Operating Profit 2.7 trillion won
Expanding the proportion of 10nm-class 2nd generation DRAM (1ynm)
Will increase sales share of LPDDR5 and 96-layer NAND flash


SK Hynix announced on the 31st that it achieved annual revenue of 26.9907 trillion won and an operating profit of 2.7127 trillion won in 2019 based on K-IFRS.

In 2019, as uncertainty in the global economy increased due to global trade conflicts, business performance declined compared to the previous year as demand slowed and prices fell due to increased customer inventory and conservative purchasing policies.

Sales and operating profit for the fourth quarter of 2019 were recorded at 6.9271 trillion won and 236 billion won, respectively. Despite the dollar turning weaker in the fourth quarter, sales rose slightly compared to the previous quarter.

Operating profit decreased by 50% compared to the previous quarter due to relatively low profitability of the product line with increased weight to meet growing demand, and initial cost burdens resulting from the transition to a new process.

By product, DRAM shipments increased by 8% compared to the previous quarter and the average selling price fell by 7%, while NAND flash shipments increased by 10% and the average selling price remained at the level of the previous quarter.

SK Hynix predicted that the DRAM market this year would show a demand trend of lower in the first half and higher in the second half, driven by a recovery in demand for server DRAM and increased sales volume due to the spread of 5G smartphones. It also forecasted that the NAND flash market would see increased demand for SSDs for PCs and data centers, while the trend toward higher capacity would expand.

SK Hynix plans to operate a prudent production and investment strategy, as increased complexity and uncertainty remain compared to the past, despite recent improvements in demand trends. The strategy aims to accelerate cost reduction by enhancing technological maturity during the process transition and ensuring the seamless preparation of next-generation products.

For DRAM, the plan is to expand the proportion of 10nm-class 2nd generation products (1y nanometer) and target markets such as LPDDR5 products, where market expansion is expected. Mass production of the next-generation 10nm-class 3rd generation products (1z nanometer) is also scheduled to begin within the year.

NAND flash plans to continue increasing the proportion of sales for 96-layer products and SSDs. It also plans to begin full-scale mass production of 128-layer products within the year and expand sales into the high-capacity solution market.