SK Hynix posts 89 per cent quarterly profit plunge

Seoul: South Korean chipmaker SK Hynix posted an 89 per cent quarterly profit plunge amid sluggish demand, as a spat between Seoul and Tokyo threatens future earnings.
The long-running US-China trade dispute also weighed on the world’s second-largest memory chip maker, with operating profit down for the third consecutive quarter to 637.6 billion won ($540 million).
Net earnings were down 88 per cent to 537 billion won while total sales were down 38 per cent on year to 6.4 trillion won.
Market demand had “fallen short of earlier expectations”, SK Hynix said in a statement, with the price fall “steeper than anticipated”.
Demand for DRAM chips used in computer servers had stalled while the trade row between Washington and Beijing had affected the smartphone chip market, the firm said, adding it would adjust production and slash investment. — AFP