Hynix profits drop 34 percent -

Hynix Semiconductor has announced a slump in profits as the memory chip industry struggles with slow demand.

The South Korean company posted second quarter results of $488 million net profits, showing a 34 percent drop compared to the same point last year.

Revenues also dropped, with a 16 percent decline over the year.

The firm put this down to slowly growing demand, with other DRAM makers such as Nanya and Inotera posting declines too.

Despite the effects of the Japanese earthquake disruption pushing demand up briefly, economic instability across the globe has seen the trend reversed, says Hynix.

From the previous quarter, DRAM bit shipments were flat, with an average selling price decline of one percent. NAND flash shipments rose 36 percent, while the ASP dropped by 19 percent over the same period of time.

Like other memory makers, Hynix plans to look towards 30 nanometre process products in a bid to drive demand in the near future.

This could lead to more activity in the consumer PC market which has been lacklustre of late, and Hynix looks set to increase its 30nm output by 40 percent by the end of the year.

Hynix has also planned to start mass production of it next gen 2Ynm class process in the second half of this year.