SK Hynix, currently trailing only Samsung Electronics in the DRAM market, swung to an operating profit of KRW23 billion (US$20 million) in the second quarter of 2012 after three straight quarterly losses. However, the figure saw a 95% fall from the same period of 2011.

Hynix reported consolidated sales of KRW2.63 trillion for the second quarter of 2012, up 10% on quarter but a decrease of 5% from a year earlier.

Hynix revealed that its DRAM bit shipments and ASP for the second quarter both grew 7% sequentially. As for NAND flash, bit shipments increased 9% while ASP slipped 19%.

Hynix posted net losses for the second quarter of KRW53 billion, showing improvement from losses of KRW271 billion in the previous quarter, but a slip into negative territory compared to the profits registered in the second quarter of 2011.

"Although NAND flash price declined due to weak seasonal demand in the market, the company recorded increased revenue during the quarter thanks to relatively solid DRAM and MCP sales," Hynix said in a statement. "Especially, the price of PC DRAM increased with market expectations of industry restructuring, and that of non-PC DRAM stabilized."

Advances in process technology and production yield improvement also helped improve profitability for the DRAM business, Hynix indicated.

Hynix said that the company will move to start mass production of DRAM chips built using 20nm-class process technology, and also expand the proportion of 20nm-made NAND flash memory to further improve its cost competitiveness.

In addition, Hynix noted that the firm will put emphasis on "premium" products such as mobile DRAM, SSD and eMMC devices, and strengthen its NAND business with in-house developed controller technology.

Hynix previously announced the acquisition of US-based Link_A_Media Devices (LAMD), a developer of memory-chip controllers.