SK Hynix has announced consolidated revenues increased 8% sequentially to KRW3.94 trillion (US$3.47 billion) in the second quarter of 2016 thanks to "increased product shipments beyond expectation, courtesy of memory demand recovery." However, due to falling prices of memory chips, SK Hynix' operating profits decreased 19% on quarter.

SK Hynix disclosed its DRAM bit shipments grew 18% sequentially in the second quarter buoyed by strong demand for mobile devices and recovery in demand for PCs. However, DRAM ASPs fell 11% on quarter during the same period.

For NAND Flash, bit shipments rose by 52% as a result of growing demand for mobile devices and SSDs, SK Hynix said. ASPs, however, decreased by 11% "on account of price reduction in NAND solution devices and an increment in the sales portion of TLC products whose unit prices are relatively low."

SK Hynix' revenues for second-quarter 2016 were 15% lower than revenues of KRW4.64 trillion a year earlier, while operating profits declined 67% on year to KRW453 billion.

SK Hynix generated net profits of KRW286 billion in the second quarter of 2016, down 36% on quarter and 74% from a year ago.

In addition, SK Hynix will expand its 2Znm process production for DRAM in the second half of 2016, the company indicated. SK Hynix' 2Znm technology is being used for the manufacture of PC-use and mobile DRAM products. The company will also raise the production ratio of DDR4 and LPDDR4 products at a gradual pace. SK Hynix expects the newer 2Znm node to account for up to 40% of its total DRAM production at the end of 2016.

For NAND Flash, SK Hynix is looking to transition to a 1Ynm process and raise its competitiveness in the 3D technology field. The company will also start to mass produce 48-layer 3D NAND flash chips after completing the development within the latter half of 2016.

For NAND Flash, SK Hynix is looking to expand production built using 1Ynm planar NAND process technology, while starting to ship 36-layer 3D NAND for mobile devices. The company added it will start shipping 48-layer 3D NAND flash in the latter half of 2016.