The production value of memory chips in Korea totaled KRW1.313 trillion (US$12 billion) in the second quarter of 2015, increasing 1% from the previous quarter, affected mainly by a low bit growth of DRAM and NAND flash chips from SK Hynix, according to Digitimes Research.
Additionally, server-use DRAM products became the primary product line for SK Hynix for the first time in the second quarter as sales of its PC-use DRAM chips suffered a significant decline as compared to a quarter earlier.
Price reductions of PC DRAM chips were greater than market expectations in the second quarter due to an oversupply in the market, affecting sales performance of SK Hynix. Comparatively, Samsung Electronics was less affected by declining PC DRAM prices because mobile DRAM products accounted for 35% of its total DRAM income. Samsung also saw its memory and semiconductor revenues hit a record high in the second quarter, resulting in an operating income of KRW3 trillion in the quarter.
For the third quarter, the bit growth rates of NAND flash shipments at Samsung and SK Hynix are likely to reach 10-13% on quarter, respectively. Meanwhile, Samsung is expected to see shipments of its DRAM chips grow 12-14% sequentially in the quarter compared to a 5-8% growth at SK Hynix.
Overall, the production value of Korea's memory products is expected to increase 3% on quarter and 12% on year in the third quarter of 2015, Digitimes Research estimated.