Chips down at SK Hynix

SOUTH Korea’s SK Hynix, the world’s second-largest memory chip maker, saw operating profits plunge more than two-thirds in the first quarter in the face of lower prices, it said yesterday.

Korean chipmakers – led by the behemoth Samsung Electronics – have enjoyed record profits in recent years as prices for their products soared.

But demand has started to decline while global market supply is increasing after manufacturers invested billions in new factories.

SK Hynix supplies to companies from Apple to China’s Huawei Technologies, and recorded operating profits of 1.4 trillion won ($1.72 billion) in the January to March period, it said – down 69 per cent yearon-year.

Revenues dropped 22 per cent and net income slumped 65 per cent.