SK hynix, the world's second-largest memory chip maker, will focus more on high-performance memory chips such as DDR4, LPDDR4 and NAND Flash for mobile and solid-state drives to compensate for sluggish demand in the DRAM market for PCs. "To respond to the rapidly changing market condition, we will boost the production of DDR4 and LPDDR4 memory chips to meet expanding demand while reducing the manufacturing of DDR3 products," SK hynix President Kim Joon-ho said during a conference call, Thursday.
"We will also expand production of 10-nano triple level cell (TLC) NAND Flash memory chips and the second-generation 3D products. We will also speed up development of TLC-based third-generation products to meet the expanding 3D NAND Flash market."
The South Korean company on Thursday reported an operating profit of 1.375 trillion won ($11.83 billion) for the second quarter, up 27 percent from a year ago.
Sales stood at 4.639 trillion won, up 18 percent in the same period. Net profit was 1.1 trillion won in the quarter.
The global semiconductor industry has suffered a decrease in DRAM prices, triggered by worse-than-expected demand for PCs. The introduction of Microsoft's Windows 10 OS later this month as well as Intel's "Skylake" processors in the latter half of the year are not expected dramatically to boost the PC market.
The company, however, remains confident about the profitability of products for server applications and mid and low-priced smartphones.