Hynix Semiconductor swung to net losses in the third quarter due mainly to weakness in the prices of DRAM chips.
Hynix reported KRW2.29 trillion won (US$2.2 billion) in consolidated revenues for the third quarter of 2011, down 17% sequentially. The company attributed the decline to weak end-market demand amid macro-economic uncertainty.
Hynix registered operating losses of KRW277 billion in the third quarter, compared to profits of KRW447 billion in the prior quarter and profits of KRW924 billion a year ago. The company wrote off KRW132 billion for losses incurred for its inventory in the third quarter as a result of steep DRAM price falls.
Hynix generated net losses of KRW563 billion in the third quarter, compared with profits of KRW473 billion in the second quarter and profits of KRW1.04 billion in third-quarter 2010. Losses included a KRW250 billion currency exchange loss.
Hynix said that during the third quarter, DRAM bit shipments increased 9% sequentially while ASPs fell 29%. For NAND Flash, bit shipments rose 16% on quarter while ASPs slid 14%.
In addition, Hynix revealed that DRAM products manufactured using 30nm-class process technology will account for about 40% of company production by the end of 2011, compared to 20% at the end of the third quarter. The company also expects to complete development of new chips built using 2Xnm process in the fourth quarter.
Hynix also indicated the company has switched its focus to non-PC memory manufacturing, with PC DRAM now accounting for as low as 30% of total DRAM sales.
As for NAND flash, Hynix plans to raise its proportion of 2Xnm-made products in overall production to almost 80% by the end of 2011, from just over 70% at the end of the third quarter.