Joyce Lee and Heekyong Yan

SEOUL (Reuters). SK Hynix predicted steady demand for memory chip products on Tuesday, as it reported its highest quarterly operating profit since nearly three years. This was due to rising prices. It is more bullish than competitors like Micron (NASDAQ):

SK Hynix, along with other chipmakers, has been affected by slower personal computer sales following a surge in pandemic-driven sales. However the South Korean company stated that supply shortages have created a demand for computers chips which could increase sales next year.

Kevin Noh (SK Hynix chief financial officer) stated that although there have been many uncertainties in recent times, he believes memory continues to do business at a level which provides predictability and good supply.

Intel (NASDAQ) stated earlier in the month that shortages of chips had stopped customers shipping servers and PCs to them, echoing Micron’s comments.

SK Hynix believes that corporate demand as well as changing working environments will drive PC chip demand. It trails Samsung Electronics (OTC:) Co Ltd by DRAM chips for temporary storage on PCs, servers, and mobile devices.

Hynix said that the expected replacement cycles of equipment purchased by data centers during 2017-2018 would create demand for server chips.

SK Hynix shares rose 3%, compared with a 0.6% gain in the wider market.

SK Hynix stated that the operating profit rose from 1.3 trillion won a previous year to 4.2 trillion won in July-September quarter.

This was the company’s highest quarterly profit since 2018’s fourth quarter, and it exceeded a Refinitiv Smartestimate (4.1 trillion) that 18 analysts had calculated.

According to analysts, the NAND division of Apple Inc (NASDAQ;) became profitable for first time in the fourth quarter 2018, according to reports. NAND chips serve as permanent storage for mobile devices and servers.

SK Hynix stated that it expects Chinese regulators will approve the deal to purchase Intel’s NAND company this year.

Analysts stated that the company has improved the yield of 128-layer NAND flash devices, which serve the data storage market. This will propel shipments.

SK Hynix reported that third quarter revenue increased by 45% year-over-year, reaching a record of 11.8 trillion won.

$1 = 1,177.2300 won