SK Hynix expects strong cellular chip income, average server demand in fourth quarter

SK Hynix, the world’s No.2 memory chip maker, said it envisioned sturdy desire for mobile and Laptop chips to carry on in the fourth quarter as it posted a 175per cent jump in operating profit in the July-September time period, matching anticipations.

FILE Image: The symbol of SK Hynix is viewed at a plant in Icheon southeast of Seoul, January 30, 2013. REUTERS/Lee Jae-Received/File Photograph

SEOUL: SK Hynix, the world’s No.2 memory chip maker, stated it envisioned sturdy demand from customers for cellular and Pc chips to continue on in the fourth quarter as it posted a 175per cent soar in working income in the July-September period of time, matching anticipations.

The South Korean business which counts Apple Inc and Huawei amongst its prospects stated it experienced witnessed a recovery in cellular DRAM need and revenue enlargement in mobile NAND flash in the third quarter.

The pattern would continue in the current quarter thanks in part to new smartphone launches, it reported.

Nevertheless the marketplace for server chips would see far more modest growth in line with the 3rd quarter.

The chipmaker described third-quarter running profit of 1.3 trillion received (£876 million), up from 473 billion gained a year previously. Revenue rose 19for each cent to 8.1 trillion received.

Analysts had expected a 1.27 trillion gained gain, according to Refinitiv SmartEstimate that is weighted toward a lot more constantly accurate analysts.

The third-quarter result was buoyed by Huawei’s stockpiling of semiconductors before U.S. limits barred it from getting chips produced with U.S. engineering, analysts said.

Orders for mobile chips from Chinese smartphone makers have elevated in the fourth quarter as they contend to grab Huawei’s industry share, Samsung Electronics Co Ltd explained previous month.

SK Hynix agreed in October to buy Intel Corp’s NAND memory chip enterprise for US$9 billion (£7 billion) in an all-dollars offer that would propel the South Korean chipmaker to 2nd in the global rankings and deliver the gains of consolidation to the NAND flash company, analysts claimed.

(Reporting by Joyce Lee and Hyunjoo Jin Enhancing by Stephen Coates)