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SKOREA-ECONOMY-SEMICONDUCTORS-SKHYNIX
SK Hynix Q4 operating profit surges 298%
SEOUL, Jan 29, 2021 (BSS/AFP) – The world’s second-largest memory chip
maker, South Korea’s SK Hynix, saw fourth-quarter operating profits quadruple
as strong mobile chip demand offset lower prices, it said Friday.
The coronavirus has wreaked havoc with the world economy, with intensive
lockdowns and travel bans imposed around the globe for many months.
But the pandemic — which has killed more than two million people worldwide
— has also seen many tech companies boom, including SK Hynix and Samsung.
Operating profit for SK Hynix surged 298 percent year-on-year to 966
billion won ($866 million) in the October-to-December period, the company
said.
It posted a net profit of 1.77 trillion won for the period, reversing a
loss of 126 billion won a year earlier, while revenue rose 15 percent to 7.97
trillion won.
On a quarter-on-quarter basis, revenue was pushed down by falling prices
and the weak dollar, the company said, but strong demand drove the increase
in profits.
Full-year net profit came to 4.76 trillion won, up 137 percent from 2019.
SK Hynix supplies chips to companies such as US giant Apple, and last year
it announced a record $9-billion deal to buy Intel’s flash memory chip
operation as it seeks to bolster its position against rival behemoth Samsung
Electronics.
Going into 2021, the company will “actively establish the foundation for
future growth by smoothly proceeding (with the) acquisition of Intel NAND
businesses”, it said Friday.
Demand for server and mobile DRAM products will remain high this year, the
company said, as global firms invest in new data centres and more shipments
of 5G phones.
SK Hynix shares were up 2.44 percent in morning trade in Seoul.
BSS/AFP/GMR/0942 hrs