Hynix Semiconductor, the world’s second-largest memory chipmaker, on Thursday reported its biggest quarterly profit in three years, in the latest sign that the semiconductor industry is back on track after a two-year slump.

The South Korean company said it expected to benefit from increasing demand for personal computers, which use the for D-Ram chips that Hynix sells. Memory chip prices have risen in recent months, in part because of a lack of supply after chipmakers delayed making new investment during the global economic downturn.

“Since the global economy entered a recovery phase, demand for D-Ram chips is expected to grow this year,” said Hynix’s chief financial officer, Kim Min-chul, said. “The PC market is anticipated to continue its momentum by growing in the mid-teen per cent.”

Hynix joins US and Asian peers such as Taiwan’s Nanya Technology in reporting a turnround in earnings. The South Korean group said it swung to a net profit of Won652bn ($573m) in the fourth quarter from a Won1,690bn loss a year ago.

Last week, the world’s largest chipmaker, Intel, reported a surge in fourth-quarter profit and forecast higher sales for the first quarter. Micron Technology, the biggest US memory chip producer, last month posted its first quarterly profit in more than two years on rebounding prices.

Encouraged by the improving earnings, Hynix said this week that it planned to pay back more than Won1,000bn in debt this year. Hynix also plans to invest about Won2,300bn this year in upgrading its production facilities.

Analysts expect the recovery in the chip sector to continue this year as the economic rebound increases demand from companies for PCs. Microsoft’s Windows 7 operating system, which requires more memory to run each computer, is also likely to push up sales.

Morgan Stanley has forecast that global PC demand will rise 15 per cent this year.

Analysts expect the strong earnings and wider sectoral recovery to encourage more interest in the planned sale of a stake in Hynix by a group of creditors who spent $4.6bn bailing out the chipmaker after it almost collapsed in 2001.

An attempt last year to sell a 28 per cent stake failed to attract much interest and the preferrred bidder Hyosung, a mid-sized conglomerate focused on fibre and chemicals, eventually dropped out in November.

The creditors group led by Korea Exchange Bank recently resumed the bid process, although the size of the stake being sold has been reduced to 15 per cent. Creditors plan to accept letters of intent from prospective buyers until the end of this month and select a preferred bidder in the second quarter.

The group are understood to be targeting domestic buyers although foreign investors are likely to be allowed to join as financial backers.

Hynix shares have gained more than 10 per cent so far this month after more than trebling last year on the industry recovery. On Thursday they closed up 2 per cent at Won25,950.