SK Hynix said it would cut 2023 investment by 50% following its Q3 profit crash, the result of high inflation and weak consumer demand.
What just happened? Another memory chip giant is suffering the effects of «unprecedented deterioration» in consumer demand and US sanctions against China. SK Hynix said it would slash investment after third-quarter profits fell 60%, warning that the Biden Administration’s restrictions could force it to close or sell a major plant in China.
SK Hynix said it would cut 2023 investment by 50% following its Q3 profit crash, the result of high inflation and weak consumer demand.
Exacerbating the company’s problems are US restrictions against China’s semiconductor industry. SK Hynix said it expects the export controls to hinder any expansion plans for its plant in Wuxi, China, where almost half of all the company’s DRAM chips are produced.
Should Washington’s restrictions prevent SK Hynix from acquiring the chipmaking tools the factory requires to sustain DRAM production, it would be forced to sell or move the equipment to South Korea.
