The global memory chip industry is entering the super cycle state

Super cycle refers to the market for high capacity memory requirement is high, but the miniature chip suffered stagnant, resulting in supply can not keep up with the step of market demand, so the wafer is to obtain high profits, high stock prices before SK hynix.

UBS believes that due to the semiconductor boom, SK Hynix this year is expected to can hit a record high, this is the SK Hynix from May last year, prices, mainly due to soaring 106% of total so far. But next year, and the development of SK Hynix is not so optimistic, UBS is expected in 2018 SK Hynix operating profit likely dropped 36%.

In view of this, plus SK Hynix stock has hit a high, UBS in the report will SK Hynix investment rating from buy to neutral tone usually this means selling. In addition, Moodie is not optimistic about the credit rating company bought a minority stake in Toshiba Hynix Semiconductor, because Toshiba released shares less than 20%, SK Hynix has little effect on cash flow and technology, it will have a negative impact on the credit SK hynix.

Key word：memory chip