SK Hynix to cut NAND flash output by over 10%
digitimes.com
SK Hynix will reduce its total NAND flash wafer production by more than 10% starting this year, as a result of the efforts to slow down its capacity expansion pace.
SK Hynix reported operating profits of KRW1.37 trillion (US$1.18 billion) for the first quarter of 2019, down 69% on both sequential and on-year bases, while consolidated revenues fell 32% on quarter and 22% from a year earlier to KRW6.77 trillion. The company attributed its negative performance to " a faster-than-expected price decline and lower shipments due to slowing memory demand."
SK Hynix saw its DRAM bit shipments and ASPs decrease 8% and 27%, respectively, on quarter. "Seasonal slowdown and conservative server purchases" led to both shipment and ASP declines, the company said.
SK Hynix disclosed its NAND flash ASPs fell 32% sequentially in the first quarter, due to "high inventory levels and intensifying competition among suppliers," while bit shipments slipped 6% on quarter.
SK Hynix generated net profits of KRW1.1 trillion in the first quarter of 2019, down 68% sequentially and 65% on year.
SK Hynix remains focused on technology advancements for profit improvement. The company plans to start selling 1ynm DRAM chips mainly for computing products in the second half of 2019, while looking to expand its supply of high-density 64GB modules. As for NAND flash, SK Hynix will grow 72-layer 3D products as a proportion of total NAND chip output while promoting 96-layer 4D NAND memory for SSDs and mobile devices in the second half of 2019.
In addition, SK Hynix plans to ramp up the capacity at its new M15 fab in Cheongju, Korea at a slower pace. As a result, the company's total NAND wafer produced this year is expected to be more than 10% lower than the 2018 level, SK Hynix indicated.
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SK Hynix Inc. Reports First Quarter 2019 Results 2019.04.25
skhynix.com
For NAND Flash, the average selling price decreased by 32% due to high inventory levels and intensifying competition among suppliers. The bit shipments declined by 6% QoQ.
As for NAND flash, SK Hynix will grow 72-layer 3D products as a proportion of total NAND chip output while promoting 96-layer 4D NAND memory for SSDs and mobile devices in the second half of 2019.
Interesting. SK Hynix doesn't put a balance sheet on it's quarterly financial results release. I'm curious how inventories turned out.
They have already stopped producing 36 and 48 layer 3D NAND altogether? That's less than two years of production, maybe less than 18 months......
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