Hynix Semiconductor Inc. said Tuesday the chip industry is set to recover from the second half of this year as the prices of dynamic random access memory chips have been rebounding following news of the bankruptcy protection filing late last month by Japan's Elpida Memory Inc. (6665.TO).

The comments from the world's second-largest computer memory chip maker by revenue after Samsung Electronics Co. come as Korean firms are set to be the main beneficiaries of the decline of Japan's only DRAM maker, as rival Taiwanese companies have struggled during a year-long downturn caused by the faltering global economy and the industry's shift to flash memory chips used in mobile devices from commodity chips used in personal computers.

In the fourth quarter, Samsung had a 43.2% share of the global DRAM market, followed by Hynix with 23.7%, Micron Technology Inc. with 12.1% and Elpida with 11.9%, according to research firm IHS iSuppli.

"DRAM prices have largely bottomed out recently and are now in recovery," said Hynix Chief Executive O.C. Kwon at the firm's first news conference since SK Telecom Co., South Korea's largest mobile carrier by subscribers, completed a KRW3.34 trillion ($2.98 billion) acquisition of a 21.05% stake in Hynix last month.

"Price conditions will improve from the latter half of this year, while supply will likely fall because of the fallout from Elpida and the limited investments expected to be made by other firms."

Kwon also said the firm's customers have sounded out the company on whether it could boost its capacity because of concerns over the supply of DRAM chips following Elpida's filing.

Despite the rebound in prices, he said he chip maker's earnings aren't likely to show a strong improvement in the current quarter. Analysts expect the firm to see a turnaround in the April-June period.

"Hynix's opportunity in the mobile DRAM market will be increased after Elpida's news. Elpida currently has about a 25% share of the global mobile DRAM market, so the mobile DRAM market will see tight supply-demand conditions from the second quarter of this year," said Daewoo Securities in a report.

Daewoo Securities expects Hynix to post a second-quarter net profit of KRW91 billion, reversing a KRW232 billion net loss in the first quarter. Hynix had a fourth-quarter net loss of KRW239.9 billion compared with a net profit of KRW30 billion a year earlier. Sales fell 7.2% to KRW2.553 trillion from KRW2.751 trillion.

Hynix, which counts Apple Inc. and other major technology companies among its customers, also said it may increase its 2012 capital expenditure plan from KRW4.2 trillion to expand its flash-memory business. Demand has surged for flash memory chips, which are used in smartphones and tablets and as a replacement for hard drives in computers. In 2011, the company spent around KRW3.4 trillion.

The memory chip giant also said it is looking to boost its non-memory business as a long-term cash generator, without elaborating.