Hynix reported a net loss of 530 billion won (about $450 million) in the second quarter on sales of 778 billion won (about $660 million). The loss was reduced sequentially from the first quarter net loss of about 1.05 trillion won (about $890 million) on sales of 682 billion won (about $578 million).

The 14 percent sequential growth in sales was attributed to a more than 20 percent shipment growth of DRAMs, which was partially offset by a decline in the average selling price of DRAMs.

Sales from memory products constituted 82 percent of Hynix total business with DRAM at 78 percent, SRAM and flash memory making up 4 percent and logic and system ICs making up 18 percent.

The results followed one day after the European Union formally imposed anti-dumping tariffs of 34.8 percent on imports of Hynix DRAMs following a ruling that South Korea had illegally subsidized the chipmaker with loan-into-equity conversion deals.

That ruling follows a similar countervailing duty ruling in the United States. Although neither the U.S. nor Western Europe are primary destinations for DRAM the moves are bringing pressure to bear on Hynix which needs to finance technology upgrades to remain competitive during the longest-ever slump in the chip market.

"Demand for DRAM chips during the second quarter was depressed due to the stagnant economic conditions caused by Iraq war and the SARS outbreak in China," Hynix said in its statement, before speaking encouragingly of the return of corporate IT spending and back-to-school markets, which it expects to see in the third quarter.

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