{"id":4276,"date":"2020-11-04T00:00:20","date_gmt":"2020-11-04T00:00:20","guid":{"rendered":"http:\/\/localhost:8080\/sk-hynix-inc-reports-third-quarter-2020-results\/"},"modified":"2026-07-20T08:59:49","modified_gmt":"2026-07-20T08:59:49","slug":"sk-hynix-inc-reports-third-quarter-2020-results","status":"publish","type":"post","link":"https:\/\/news.skhynix.com\/en\/sk-hynix-inc-reports-third-quarter-2020-results\/","title":{"rendered":"SK hynix Inc. Reports Third Quarter 2020 Results"},"content":{"rendered":"

Seoul, November 4, 2020<\/strong>
\nSK hynix Inc. (or \u2018the Company\u2019, www.skhynix.com<\/a>) today announced financial results for its third quarter 2020 ended on September 30, 2020. The consolidated revenue of third quarter 2020<\/strong> was 8.129 trillion won while the operating profit<\/strong> amounted to 1.3 trillion won, and the net income<\/strong> 1.078 trillion won. Operating margin<\/strong> for the quarter was 16% and net margin<\/strong> was 13%.<\/p>\n

Despite the Company saw the recovery of mobile DRAM demand in the quarter, both the revenue and operating profit decreased by 6% and 33% quarter-over-quarter (QoQ) respectively, as the server DRAM and SSD demands weakened, and the overall semiconductor memory price flow turned downwards in the quarter.<\/p>\n

For DRAM, SK hynix proactively responded to rising demands of mobile and graphics DRAM, and the expansion of consumer electronics DRAM demand as well. As a result, in spite of decreased server DRAM demand, the Company\u2019s DRAM bit shipment in the quarter still increased by 4% QoQ. However, due to the unfavorable price of server DRAM and other certain DRAM products, the average selling price decreased by 7% QoQ.<\/p>\n

For NAND Flash, the sales expanded in both mobile segment and SSDs for new gaming consoles; the sales expansion boosted the NAND Flash bit shipment by 9% QoQ. Still, the weakening price flow of the server products led to the decrease of average selling price by 10% QoQ.<\/p>\n

SK hynix expects seasonal increase of mobile market demand to continue in the fourth quarter, while anticipates strong PC market demand to maintain as well.<\/p>\n

For DRAM, SK hynix will focus on responding to the mobile demands by expanding the sales of 1Ynm LPDDR5 DRAM, and also increase its presence in UFS-based multichip package (uMCP) market, which combines DRAM with high-density NAND Flash. At the same time, the Company will increase its sales proportion of high-capacity server products with more than 64 Gigabytes (GB) capacity, and maximize the sales of high bandwidth memory (HBM) products in order to enhance its position in server DRAM market based on competitive product quality.<\/p>\n

For NAND Flash, SK hynix will react to stable mobile demand in the market, while improving the profitability by expanding sales proportion of 128-layer NAND Flash products which the Company began full-scale selling in the third quarter.<\/p>\n

In today\u2019s quarterly earnings conference call, Seok-Hee Lee, Chief Executive Officer (CEO) of SK hynix participated and explained the Company\u2019s acquisition of Intel NAND memory and storage business, and its plan to create social value via environmental, social, and corporate governance (ESG) management. Seok-Hee Lee stressed, \u201cSK hynix acquired Intel\u2019s NAND memory and storage business in order to swiftly secure leading SSD technology and diversify product portfolio. With this acquisition the Company seeks to establish a balanced business structure between DRAM and NAND Flash. The expected synergy effects from this acquisition will bring both economic and social values to not only the global ICT industry including our customers and partners, but also all the stakeholders including our shareholders, local communities, and the members of SK hynix.\u201d<\/p>\n

Seok-Hee Lee further stated that \u201cThe dramatic climate change is the problem which impacts not only companies\u2019 economic value but also the survival of human race. SK hynix noticed the severity of the current global climate change, and decided to join RE100 in order to proactively respond to this crisis. The Company aims to secure all of its power consumption generated by renewable energy by 2050. On the other hand, it is notable that the general SSDs and low power consumption SSDs consume 50% and 94% less power than HDDs respectively. Consequently, if all HDD storages in global data centers are replaced by low power consumption SSDs, we can reduce 41 million tons of carbon dioxide emission. This will lead to approximately more than 4.2 trillion won value of social value. By accelerating the transition of the storages into SSDs, SK hynix will contribute to the reduction of carbon dioxide emission.\u201d<\/p>\n

Annotation<\/strong>
\n\u25a0 UFS-based multichip package (uMCP)<\/strong>
\n\u2013 A semiconductor memory package combined with UFS form factor NAND Flash and mobile DRAM which is generally adopted to mobile devices.<\/p>\n

\u25a0 High Bandwidth Memory (HBM)<\/strong>
\n\u2013 High performance, high bandwidth memory products that adopt TSV technology to dramatically accelerate data processing speed over traditional DRAMs.<\/p>\n

\u25a0 Environmental, social, and corporate governance (ESG)<\/strong>
\n\u2013 The standard to evaluate companies\u2019 non-financial results which include environmental, social, and corporate governance achievements.<\/p>\n

\u25a0 RE100<\/strong>
\n\u2013 RE100 is a global initiative bringing together the world\u2019s most influential businesses committed to 100% renewable electricity. Led by the Climate Group since 2014, 263 companies joined the initiative so far globally.<\/p>\n

\u00a0<\/p>\n

<\/p>\n

\"\"<\/p>\n

About SK hynix Inc.<\/strong>
\nSK hynix Inc., headquartered in Korea, is the world\u2019s top tier semiconductor supplier offering Dynamic Random Access Memory chips (\u201cDRAM\u201d), Flash memory chips (\u201cNAND Flash\u201d) and CMOS Image Sensors (\u201cCIS\u201d) for a wide range of distinguished customers globally. The Company\u2019s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about SK hynix is available at www.skhynix.com<\/a>, news.skhynix.com<\/a>.<\/p>\n

\u00a0<\/p>\n

Media Contact<\/strong>
\nSK hynix Inc.
\nGlobal Public Relations<\/p>\n

Technical Leader
\nJaehwan Kevin Kim
\nE-Mail: global_newsroom@skhynix.com<\/a><\/p>\n

Technical Leader
\nSejin Julia Yoo
\nE-Mail: global_newsroom@skhynix.com<\/a><\/p>\n

Technical Leader
\nEun Suk Yixi Lee
\nE-Mail: global_newsroom@skhynix.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Seoul, November 4, 2020 SK hynix Inc. (or \u2018the Company\u2019, www.skhynix.com) today announced financial results for its third quarter 2020 ended on September 30, 2020. The consolidated revenue of third quarter 2020 was 8.129 trillion won while the operating profit amounted to 1.3 trillion won, and the net income 1.078 trillion won. Operating margin for [\u2026]<\/p>\n","protected":false},"author":23,"featured_media":4274,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_migrated_source_id":5991,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[7,4],"tags":[384,385,355],"class_list":["post-4276","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ir","category-press","tag-3q-2020","tag-conference-call","tag-financial-results"],"acf":[],"_links":{"self":[{"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/posts\/4276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/comments?post=4276"}],"version-history":[{"count":4,"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/posts\/4276\/revisions"}],"predecessor-version":[{"id":11386,"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/posts\/4276\/revisions\/11386"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/media\/4274"}],"wp:attachment":[{"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/media?parent=4276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/categories?post=4276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/tags?post=4276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}