Hynix reaps gain from higher DRAM prices

The rising price of computer memory may not be welcomed by consumers, but for South Korea's Hynix Semiconductor Inc., one of the largest memory chip makers in the world, the higher prices have brought with them something not seen for more than a year: profitability.

In the first quarter of this year Hynix reported a parent (unconsolidated) net income of 3 billion won (US$2.3 million) on revenue of 823 billion won.

A year earlier, Hynix saw parent net losses of 540 billion won for the quarter on sales of 1.8 trillion won, according to Daniel Behrendt, an investor relations spokesman for Hynix. Figures for the two years are not directly comparable because Hynix spun off several divisions, including its telecommunication and TFT LCD (thin film transistor liquid crystal display) operations, during 2001.

Prices for SDRAM (synchronous dynamic RAM) and DDR DRAM (double data rate DRAM) began rising on the spot market in the final quarter of last year and led Hynix and fellow Korean memory maker Samsung Electronics Co. Ltd. to raise prices for their major customers during the first quarter, say analysts. A 256M-byte stick of DDR DRAM is currently selling for around US$77 in Asia, compared to around $20 six months ago, according to market analysts ICIS-LOR.

The profit was welcome news for the Seoul company, which is mired in debts and currently awaiting the result of discussions between creditors and Micron Technology Inc. over a possible alliance or acquisition. Those talks began in December last year and have turned into something of a soap opera. Hardly a week goes by without local media reporting that a deal with Micron or one of a handful of other memory makers is close, but to date nothing has been announced.

"Talks are currently continuing with Micron," Behrendt said. "The goal is to have something worked out within the next two weeks."

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

PC World
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?