SK Hynix saw its operating profits surge to KRW1.54 trillion (US$1.33 billion) in the fourth qurter of 2016, while net profits also grew above KRW1 trillion.

SK Hynix has reported consolidated revenues for the fourth quarter climbed to a record KRW5.4 trillion, thanks to "favorable market conditions attributed to strong demand and product price hikes." The depreciation of the won also buoyed the Korea-based memory vendor's sales performance during the quarter.

SK Hynix saw its operating profits exceed KRW1 trillion in the fourth quarter of 2016 - the first time since third-quarter 2015, the company noted.

During the fourth quarter, SK Hynix' DRAM bit shipments grew 13% sequentially while ASPs increased 14%. Shipments were driven by strong demand for servers and mobile devices.

As for NAND flash, bit shipments decreased 3% on quarter while ASPs rose by 14%, SK Hynix indicated. The company credited the ASP growth to rising sales of eMCP devices.

SK Hynix generated net profits of KRW1.63 trillion in the fourth quarter of 2016, compared with profits of KRW598 billion in the prior quarter and profits of KRW871 billion a year ago.

SK Hynix posted revenues of KRW17.2 trillion for all of 2016, down 9% on year, while operating profits fell 39% to KRW3.28 trillion. Net profits for the year came to KRW2.96 trillion, down 32% from 2015 levels.

In addition, SK Hynix noted the company will step up expanding "2Znm" process capacity for the manufacture of DRAM products in 2017, while mass production of DRAM chips built using a newer 1Xnm process will kick off. The company will also set up additional cleanroom facilities at its M14 fab in Icheon to meet robust NAND flash demand, and is looking to complete development of its 72-layer 3D NAND.