SK hynix Inc. Reports Third Quarter 2016 Results

Seoul, December 22, 2016

SK hynix Inc. (or ‘the Company’, www.skhynix.com) today announced financial results for its third quarter ended September 30, 2016.

The Company’s consolidated third quarter revenue was 4.24 trillion won increasing 8% and operating profit amounted to 726 billion won rapidly rising 60% from the previous quarter. Net income for the quarter was 598 billion won after income tax expenses and so on. Operating margin was 17% and net margin was 14%.

The Company’s revenue increased owing to the memory market improvement led by launches of new mobile products and steady demand from a PC segment. The operating profit jumped as its expansion of a cutting edge 2Znm process contributed to the cost reduction and the average selling price of the products took an upturn.

Quarter over quarter, DRAM bit shipments grew by 8% due to increased inventory stocking orders from PC OEMs before the peak season as well as the launches of the brand new mobile devices with higher DRAM densities. The average selling price stayed flat. For NAND Flash, the bit shipments and the average selling price increased by 12% and 7% each also thanks to the new mobile gadgets with higher NAND densities.

SK hynix will expand the 2Znm to reach 40% of its total DRAM production at the end of the year. To raise its competitiveness in DRAM, the Company will expand the 2Znm process in a mobile sector and develop 1Xnm DRAM without a setback. For NAND Flash, SK hynix plans to sale 48-layer 3D NAND within this year as well as continuously increase the portion of planar 1Ynm products. The Company will also finish to develop 72-layer 3D NAND within the first half and start the mass production of it from the latter half of next year.

Please note that the financial results discussed herein are preliminary and speak only as of September 30, 2016. Readers should not assume that this information remains operative at a later time. In addition, this information may include forward-looking statements that involve a variety of risks and uncertainties that could cause actual results to differ materially. For further discussion of these risks and uncertainties, readers should refer to SK hynix Inc.’s filings with the Korea Exchange. This document is neither an offer to sell nor a solicitation of an offer to sell any security of SK hynix Inc..

About SK hynix Inc.

SK hynix Inc., headquartered in Korea, is the world’s top tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), Flash memory chips (“NAND Flash”) and CMOS Image Sensors (“CIS”) for a wide range of distinguished customers globally. The Company’s 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.