Hynix Semiconductor has announced that net profits for the first quarter of 2011 slid 66% from a year earlier to US$255 million, citing falling chip prices.

"During the quarter, the business environment was challenging with a weak DRAM pricing trend and global economic uncertainties," Hynix said in a statement.

Hynix reported KRW2.79 trillion won in consolidated revenues for the first quarter, down 1% on year. Operating profits for the quarter decreased 56% from a year ago to KRW323 billion.

On a sequential basis, however, Hynix registered growth of 2% in sales and 10% in operating profits in the January-March quarter of 2011. Net profits soared nearly nine-fold – by 812% – from the KRW30 billion posted in the fourth quarter of 2010.

Hynix previously disclosed that earnings for fourth-quarter 2010 were hurt by the impact of a lost legal case.

DRAM bit shipments increased by 15% sequentially in the first quarter of 2011, but ASP fell 13%, Hynix said. Meanwhile, shipments of NAND flash chips climbed 15% on quarter while ASP was flat.

Hynix noted that sales of 40nm DRAM products will account for 60% of its total DRAM sales by the end of the second quarter, compared to 55% in the first quarter. The company is also gearing for mass production of 30nm chips in 2011, and expects sales generated from the node technology to contribute 40% to its DRAM business revenues by the end of the year.

Hynix has switched its focus to non-PC memory manufacturing, the company said, adding that PC DRAM now accounts for as low as 30% of total DRAM sales.

As for NAND flash, 2Xnm process products will contribute more than 50% of Hynix' total NAND flash sales by the end of the second quarter compared to 40% in the first quarter, the company said.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved