SK Hynix has reported sequential decreases in revenues and profits for the second quarter of 2015, due mainly to falling prices for its memory chips particularly PC DRAM.

SK Hynix posted operating profits of KRW1.38 trillion (US$1.18 billion) in second-quarter 2015, down 13% sequentially but up 27% from a year ago. Revenues for the quarter rose 18% on year but slipped 4% on quarter to KRW4.64 trillion.

SK Hynix' DRAM and NAND flash bit shipments increased 4% and 8%, respectively, compared to the first quarter. However, ASPs for its DRAM and NAND flash chips fell 8% and 6%, respectively, on quarter, the company disclosed.

SK Hynix attributed its sequential revenue and profit drops to weakening demand for PCs. Nevertheless, steady demand for servers and mobile devices led to the on-year increases, the company said.

SK Hynix generated net profits of KRW1.11 trillion in the second quarter of 2015, down 14% on quarter but up 65% on year.

SK Hynix disclosed plans to expand the output for DDR4 and LPDDR4 memory chips while reducing DDR3 production in the third quarter. As for NAND flash, the company will increase the production ratio of 1Xnm TLC and start producing 36-layer 3D chips in small volumes. SK Hynix also expects to complete the development of 48-layer TLC 3D NAND flash by the end of 2015.