Based on Acquisition of Intel's NAND Business
SK hynix has laid out a plan to more than triple its NAND sales to 15 trillion won within five years based on its acquisition of Intel's NAND business.
The company's CEO Lee Seok-hee presented the new vision at a conference call held on Nov. 4 to announce its earnings for the third quarter.
"We will make our NAND business sustainable within the next three years and more than triple the company's NAND sales within five years," Lee said. "We will make sure that SK hynix is recognized as a top memory player through the acquisition of the NAND business from Intel, breaking away from its longstanding image as a DRAM leader.”
SK hynix's NAND sales in 2019 amounted to US$4.55 billion.
Meanwhile, SK hynix continued its strong business performance in the third quarter. The company announced that it recorded 8,128.8 billion won in sales and 1,299.7 billion won in operating profit. The figures are up 18.9 percent and 175 percent, respectively, from a year earlier. This surpasses a consensus of 1.253 trillion won in operating profit in the third quarter suggested by FnGuide.
The impressive performance is attributable to increased demand for semiconductors for IT devices amid an increase in telecommuting and online classes sparked by COVID-19.
However, although demand for mobile devices showed signs of a recovery in the third quarter, the company's sales and operating profit dropped 6 percent and 33 percent, respectively, compared to the previous quarter due to weak demand for DRAMs for servers and solid state drives (SSDs) and a drop in memory prices, SK hynix explained.