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SK Hynix on Friday reported its highest quarterly profit in four years due to strong demand for memory chips and said it expects supply chain issues to gradually ease in the second half of This year.

The world’s second-largest memory chipmaker posted an operating profit of 4.2 trillion won ($3.5 billion) in the October-December period, a fourfold increase from 959 billion won a year earlier. Sales jumped 55% to a record 12.4 billion won.

The South Korean company said it will continue its large-scale growth in its Nand flash memory business. He expects sales of Nand flash memory chips to double this year, as will the $9 billion acquisition of Intel’s Nand flash business.

Prices for Nand chips, which store files and data without power, are expected to fall less than expected this quarter as a severe lockdown in Xian, China last month prompted PC makers to increase orders in due to reduced supply. Prices are expected to fall 8-13% from the previous quarter, according to TrendForce, a market research firm.

“To mitigate potential risks in logistics, Nand flash buyers are now more willing to accept a tighter decline in contract prices in order to get their products sooner,” TrendForce said earlier this week.

SK Hynix expects demand for memory chips to increase this year. The company said on Friday it was focused on securing profitability by flexibly responding to Dram’s demand. Dram chip prices, which enable short-term storage of graphics, mobile and server chips, are also expected to slow this quarter before rebounding in the next quarter, analysts said.

Robust earnings sent shares of SK Hynix up 5.7% on Friday morning, against a 1.1% rise in the Kospi Composite index.

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