SK Hynix's Q4 operating profit surges 298%

[SEOUL] 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 per cent year-on-year to 966 billion won (S$1.15 billion) 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 per cent 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 per cent from 2019.

SK Hynix supplies chips to companies such as US giant Apple, and last year it announced a record US$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 on 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 per cent in morning trade in Seoul.

AFP