Because of a faster-than-expected worth decline and decrease shipments resulting from slowing reminiscence demand, the income and the working revenue within the first quarter fell by 32% and 69%, respectively, quarter-over-quarter (QoQ). Due to seasonal slowdown and conservative server purchases, DRAM bit shipments decreased by 8% QoQ. The common promoting worth dropped by 27%. For NAND Flash, the typical promoting worth decreased by 32% resulting from excessive stock ranges and intensifying competitors amongst suppliers. The bit shipments declined by 6% QoQ.
SK Hynix plans to answer the downturn within the reminiscence market by specializing in know-how improvement.
The Company will reply to the rising demand for DRAM via know-how migration. It will regularly improve the proportion of 1Xnm and begin promoting 1Ynm, largely computing merchandise, within the second half of 2019. SK Hynix intends to develop the provision of the high-density 64GB modules in keeping with the launch of a brand new server chipset that helps high-density DRAM.
For NAND Flash, SK Hynix will think about bettering profitability. The Company has stopped producing the 36-layer and 48-layer 3D NAND, preliminary 3D merchandise that are comparatively larger in value, and can improve the proportion of 72-layer merchandise. The Company additionally plans to strengthen its place within the SSD and cell market within the second half with its 96-Layer 4D NAND. Considering the demand scenario, the tempo of the ramp-up of the brand new M15 FAB in Cheongju, Korea, will likely be slower than deliberate. As a outcome, SK Hynix’s NAND wafer enter this yr is anticipated to lower greater than 10% in comparison with final yr.
In the market the place issues over the uncertainty about reminiscence demand and expectations for demand restoration coexist, SK Hynix will think about value discount and high quality assurance to safe its personal competitiveness.
