South Korean chip maker SK Hynix Inc. (SK Hynix Inc.) reported Q3 earnings for the third quarter of 2018 on Oct. 25: revenue rose 41% (quarterly increase 10%) to 11.417 trillion won, a record high; revenue increased 73% (quarterly increase 16%) to 647.2 trillion won; earnings increased 11 percentage points (quarterly increase 3 percentage points) to 57%; net income increased 54% (quarterly increase 8%) to 4.692 trillion won Trillion won.
Thomson Reuters reports that Refinitiv surveys showed analysts had expected SK Hynix to make 6.3 trillion won in the third quarter.
SK Hynix said China's growing demand for high-density chips from low-end smartphones would help offset the slowdown in DRAM chip prices and the fall in NAND chip prices. However, overall economic factors, including global trade conflicts, will exacerbate the uncertainty of the slowdown in DRAM markets.
SK Hynix pointed out in a financial release that NAND Chip Average Sales (ASP) fell by 10% in the third quarter of 2018 due to increased supply. DRAM ASP, on the other hand, rose 1% quarterly due to server demand and the seasonal recovery in China's mobile device market.
SK Hynix also noted that China's smartphone manufacturers continue to drive overall demand for higher device chip density, but overall customers adopt a conservative component inventory policy.
On October 12, the General Administration of Customs of China announced that the annual import value of integrated circuits (IC) from January to September 2018 was 21.7% to 1.5285 trillion yuan (RMB), which was higher than 1.11759 trillion yuan of crude oil.
IHS Markit announced on March 28 that SK Hynix's global semiconductor market ranking in 2017 rose to third place from fifth place in 2016. SK Hynix revenue growth in 2017 ranked the top 20 manufacturers, revenue increased by 81.2% to 26 billion 638 million U. S. dollars.