Hynix sets the best performance in a single season and plans to increase production capacity

SK hynix released its earnings report on July 26, showing that Hynix achieved the best performance in a single season. Sales in the second quarter of 2018 are expected to be 10.3705 trillion won, up 55% year-on-year and 19% quarter-on-quarter.
The performance of Samsung Electronics" target="_blank">Electronics‘ semiconductor division is also quite good. Samsung Electronics plans to announce its performance on July 31. It is expected that the semiconductor division’s performance will reach 12.2 trillion, accounting for about 80% of the company‘s overall operating profit.
Thanks to South Korea‘s leading position in the semiconductor industry, the second quarter’s financial report data is quite good. As the fourth industrial revolution has led to a surge in demand for semiconductors, unbalanced market supply and demand has caused semiconductor prices to rise. In the second quarter, SK hynix’s shipments of DRAM and Nand flash memory increased by 16% from the previous quarter, but still could not meet the demand for semiconductors for server and personal computer products.
However, according to data from the DRAMeXchange market research organization, as the price of Nand flash memory and DRAM declines, the profits of the semiconductor industry are about to become a thing of the past. DRAM prices fell for six consecutive months, and the Nand price fell for several months.
At present, China‘s semiconductor industry is catching up. With the entry of Chinese companies, the price of semiconductors will fall further.
According to Reuters, SK Hynix said on Friday that it plans to invest 3.5 trillion won ($3.1 billion) to build a semiconductor plant in South Korea to cope with the growing demand for memory chips. SK hynix, the world‘s second-largest memory chip maker, said in a statement that the new plant will break ground at the end of 2018 and is scheduled to be completed in October 2020. In addition, SK Hynix said that the production mix of the new plant will be decided in the future, depending on the future market conditions.