SK Hynix

SK Hynix to Halve CapEx Amid Drop in Memory Demand

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As demand for PCs and smartphones slumps, so does demand for 3D NAND and DRAM memory. As a result, companies like SK Hynix suffer from dropping revenue and dramatic declines of profits. According to reports via Reuters and Nikkei Asia, in a bid to balance the books, SK Hynix plans to halve its capital expenditures next year and focus on the manufacture of more expensive types of memory. The company also plans to assess the future of its fab in China.

SK Hynix Cuts CapEx Due to Major Profits Fall

Just like other semiconductor companies, the memory maker believes that demand for chips will be sluggish for several quarters and supply will exceed demand, which means tiny profits amid lowering revenue. To that end, SK Hynix will reduce its CapEx investment next year by more than 50% year-over-year. The company does not disclose how much will it spend on new fabs and tools in 2023, but only says that it would be ‘at the upper range of 10 – 20 trillion won ($7 billion – $14 billion). 

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