Industry News

SK Hynix, the second-largest memory chip maker, will cut its investment in storage prices

Update time : 2022-07-18 14:02:18

SK Hynix, the world's second-largest memory chip maker, is considering cutting capital spending by about a quarter to $16 trillion won ($12.2 billion) in response to slower-than-expected demand for electronics, people familiar with the matter said. SK Hynix is basically spending about 21 trillion won this year to build DRAM and NAND capacity as planned, according to people familiar with the matter.

However, uncertainty over declining demand for chips in various areas, including smartphones and servers, has forced the company to reconsider its expansion plans for next year. According to industry research company Jibang Technology, the average contract price of DRAM memory for major memory chips fell 10.6 percent year on year, for the first time in two years, and NAND prices, which are volatile.
Not only is the second quarter of the decline, but the current third quarter will be worse, with Jibang Technology predicting that the average memory contract price will fall by 21%, and the NAND flash memory price is down by 12%.

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