Financial and Technology News

SK Hynix posts big jump in second-quarter profit

he world’s second-largest memorychip maker, South Korea’s SK Hynix Inc, yesterday posted a big jump in quarterly profit thanks to higher chip prices, but warned of uncertainty for the rest of the year.
South Korean chipmakers — led by behemoth Samsung Electronics Co — have enjoyed record profits in the past few years as prices for their products soared.
SK Hynix supplies chips to companies from US giant Apple Inc to China’s Huawei Technologies Co (華為), but demand began to decline as global market supply increased after manufacturers invested billions in new factories.
Nevertheless, the company’s operating profit in the April-to-June period jumped 205 percent to 1.9 trillion won (US$1.61 billion) from 638 billion won a year earlier, beating analysts’ forecasts.
“Surging demand for server memory maintained favorable memory price,” the firm said in a statement.
Its revenue also rose 33 percent to 8.6 trillion won.
SK Hynix said it expects uncertainty to continue in the second half of the year due to the COVID-19 pandemic and global trade disputes but forecast improving demand as major markets slowly resume activity.
“5G smartphones and next-generation gaming consoles which are scheduled for launching will stimulate component demand growth, as the economic activities of major countries partially reopen,” the firm said.