SK Hynix posted operating losses of two-point-88 trillion won, or some two-point-26 billion U.S. dollars, in the second quarter to vastly contract a profit of four-point-two trillion won a year ago.

In a regulatory filing on Wednesday, the semiconductor manufacturer said its sales fell 47-point-one percent to seven-point-31 trillion won in the April-to-June period, with net losses amounting to two-point-99 trillion won.

The world's second-largest memory chipmaker has recorded losses surpassing six trillion won in the first half of the year, while continuing a three-quarter streak in the red amid a prolonged slump in demand.

Due to gains in sales of DRAM and NAND flash in the second quarter and an on-quarter increase in the average sale price of DRAMs, sales rose 43-point-six percent from the January-to-March period, while operating losses fell 15-point-three percent on-quarter.

The chipmaker assessed that the market has entered a recovery phase after bottoming out in the first quarter, citing the desired effect of production cuts and rising demand for its premium products, such as HBM3 and DDR5.

The chipmaker also plans to begin mass production of the fifth-generation HBM3E in the first half of next year, and the sixth-generation HBM4 by 2026.