The output value of South Korea's memory chip industry surged 22.1% on year and 13.9% sequentially in the second quarter of 2020, when a coronavirus-induced slowdown in smartphone demand was offset by growth in demand for servers and notebooks, according to Digitimes Research.

Samsung Electronics and SK Hynix saw their memory businesses generate a combined KRW22.9 trillion (US$20.8 billion) in revenue in the second quarter. Their combined memory business revenue represents the overall output value of South Korea's memory chip industry.

Samsung and SK Hynix both remain cautious about spending this year, due to demand uncertainty arising from the ongoing coronavirus pandemic. With the supply side experiencing little growth, Digitimes Research expects promising outlook in the mid to long term.

Memory chip demand will remain significant in the third quarter, thanks to recovery in 5G hadnset demand and the availability of new games consoles.