SK Hynix more upbeat than rivals on rising memory-chip demand

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The emblem of SK Hynix is seen at its headquarters in Seongnam, South Korea, April 25, 2016. REUTERS/Kim Hong-Ji

SEOUL, Oct 26 (Reuters) – SK Hynix forecast regular demand for reminiscence chips on Tuesday because it posted its highest quarterly working revenue in almost three years on the again of rising costs, putting a extra bullish notice than rivals together with Micron .

SK Hynix and different different chipmakers have been hit by slowing private laptop gross sales after a pandemic-led surge, however the South Korean firm mentioned provide bottlenecks had created pent-up demand for PC chips that might increase gross sales subsequent 12 months.

“There have been loads of uncertainties not too long ago, however I believe reminiscence remains to be doing enterprise at a degree that gives good provide and predictability in comparison with different semiconductors,” SK Hynix’s chief monetary officer, Kevin Noh, instructed an earnings name.

Intel mentioned earlier this month shortages of different chips had been stopping its clients from transport PCs and servers, echoing feedback from Micron.

Company demand and altering hybrid working environments would additionally underpin PC chip demand, mentioned SK Hynix, which trails solely Samsung Electronics Co Ltd in DRAM chips used for short-term storage in PCs, servers and cell units.

An anticipated alternative cycle of kit purchased by information centres throughout 2017-2018 will create demand for server chips, Hynix added.

SK Hynix shares rose 3% on Tuesday in contrast with a 0.6% rise within the wider market .

Working revenue rose to 4.2 trillion received ($3.6 billion) within the July-September quarter, up from 1.3 trillion received a 12 months earlier, SK Hynix mentioned.

That was its highest quarterly revenue because the fourth quarter of 2018, and above a Refinitiv Smartestimate of 4.1 trillion received from 18 analysts.

The Apple Inc provider’s NAND enterprise turned worthwhile for the primary time because the fourth quarter of 2018, analysts mentioned. NAND chips are used for everlasting storage in cell units and servers.

SK Hynix mentioned it anticipated Chinese language regulators to approve its deal to purchase Intel’s NAND enterprise this 12 months.

Analysts mentioned the corporate had improved the yield of its 128-layer NAND flash chips that serve the info storage market, which might propel shipments.

SK Hynix mentioned third-quarter income rose 45% on-year to a report 11.8 trillion received.

($1 = 1,177.2300 received)

Reporting by Joyce Lee and Heekyong Yang; Enhancing by Stephen Coates and Sayantani Ghosh


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