Strengthening market position by actively responding to mobile and high-capacity demand
Contributing to the global ICT industry through the acquisition of Intel's NAND division.


SK Hynix announced on the 4th that it recorded consolidated operating profit of KRW 1.2996 trillion and sales of KRW 8.1287 trillion for the third quarter of this year. These figures represent a 175% and 18.9% increase, respectively, compared to the same period last year. Net profit also increased by 117.5% to KRW 1.0778 trillion. Operating profit exceeded 1 trillion won for the second consecutive quarter.

SK Hynix explained that while demand for mobile memory recovered in the third quarter, demand for server DRAM and SSD for data centers was weak and the price trend of the memory market turned downward, resulting in a 6% and 33% decrease in sales and operating profit, respectively, in the third quarter compared to the previous quarter.

Despite sluggish demand from server customers, DRAM shipments increased by 4% compared to the previous quarter as a result of actively responding to new mobile and graphics demand and some consumer demand expansion. However, the average selling price fell by 7% due to the weak price trend of server DRAM and other products.

NAND flash shipments increased 9% quarter-over-quarter due to increased sales of mobile products and new game console SSDs, but the average selling price fell 10% due to weaker prices for server products.

SK Hynix forecasted that PC demand would remain steady in the fourth quarter, along with the continued seasonal strength in the mobile market.

DRAM will focus on meeting mobile demand by expanding sales of 10nm-class, second-generation (1Y) LPDDR5, while also expanding the uMCP market, which combines high-capacity NAND flash. Furthermore, sales of high-capacity server products exceeding 64GB will be increased. The company plans to maximize sales of HBM products and strengthen its position in the server DRAM market based on quality competitiveness.

NAND flash will also actively respond to stable mobile demand, while also improving profitability by expanding the proportion of 128-layer products, which began full-scale sales in the third quarter.

CEO Lee Seok-hee said, “In order to quickly secure SSD technology and product portfolio, we plan to acquire Intel’s NAND business division and establish a balanced business structure between DRAM and NAND flash.” He emphasized, “The synergy created through this acquisition will be able to provide economic and social value to all stakeholders, including customers, partners, the global ICT industry, shareholders, local communities, and members.”