Sources said SK Hynix is moving forward with their NAND flash and DRAM capacity expansion plans to spend about 21 trillion won this year, but the rising uncertainty of declining market demand is forcing them to reconsider their plans for next year. The sources also revealed that concerns over the slump in chip demand, which encompasses many areas from smartphones to servers, exceeded SK Hynix's expectations.
However, foreign media also mentioned in the report, SK Hynix cut capital spending in 2023, but only the sources revealed that SK Hynix has not yet made a final decision on the capacity expansion plan, so there are still variables whether they will cut capital spending next year.
In terms of declining demand for memory chips, data from research institutions show that DRAM sales, after hitting a record high of $26.24 billion in the third quarter of last year, have declined for two consecutive quarters, falling to $24.25 billion in the first quarter of this year. SK Hynix, the second largest supplier, saw its sales drop to $6.56 billion in the first quarter, down $870 million from the previous quarter, and its market share dropped from 30.1% to 27.1%.
July 15 - SK Hynix, the world's second-largest memory chip maker, is considering cutting capital expenditures by about 25 percent in 2023 due to lower-than-expected demand for end products, sources said, according to a Reuters report. From the report, SK Hynix is considering reducing its capital expenditures to 16 trillion won, or about $12.2 billion, in 2023.
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