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SK hynix announces discontinuation of 36- and 48-layer 3D NAND products



  According to the Korean technology media "DDaily", SK hynix published its first quarterly earnings report for 2019 on the 25th, with revenue and revenue of 677.27 billion won and 1,366.5 billion won respectively. Revenue fell by 31.9% compared with the previous quarter and decreased by 22.3% compared with the same period last year. The profit margin dropped by 69.2% compared with the previous quarter, and dropped by 68.7% compared with the same period of last year.

DRAM due to slower demand in the off-season and conservative purchases by server customers, compared with the previous quarter, the average selling price (ASP) fell 27%, and shipments fell 8%. NAND flash memory was affected by inventory pressure and horizontal competition. The average selling price (ASP) fell 32% and shipments fell 6%.

With the new smartphone adopting 12GB high-capacity DRAM and the demand for server DRAM will gradually increase, SK hynix expects that demand for DRAM will improve in the second quarter. On the other hand, as the second quarter enters the late stage, it is expected that demand will gradually recover and NAND flash demand will begin to increase. At present, the price of NAND flash memory has fallen by more than one year, and the demand for IT for NAND is also growing rapidly. In the future, SK hynix will expand the application ratio of SSD (Solid State Drive).

In the future, for the DRAM field, SK Hynix will focus on transforming subtle projects. First, the first generation of 10 nanometer (1X) production will be gradually expanded, and from the second half of the year, the main products will be converted into second generation 10 nanometer (1Y) products. At the same time, in order to support the high-volume DRAM requirements of the new server chip, it will start to supply 64GB module products.

In the NAND field, the future will focus on improving revenue. The 3D NAND initial products of the 3D NAND with relatively high production cost will be stopped - 2 generations (36 layers) and 3 generations (48 layers), and the proportion of production of 72 layers will be increased. In the second half of the year, it plans to use 96-layer 4D NAND products to stimulate the SSD and mobile markets. The new M15 plant in Qingzhou considers the current demand, and the mass production speed will be slower than originally planned. It is expected that SK hynix's NAND wafer input this year will be reduced by more than 10% compared with last year.

SK hynix said: "In a market where storage needs are uncertain and demand is expected to recover, efforts will be focused on reducing costs and ensuring quality."