SK Hynix records record profit loss due to chip price drop
The world’s second-largest memory chip maker SK Hynix said on Wednesday it will reduce investments after reporting its biggest ever operating loss hit by the recession. whole industry.
The South Korean chipmaker, which supplies memory chips to Apple, reported an operating loss of 1.7 trillion won ($1.4 billion) for the October-December period, caused by “Demand is weak and memory chip prices plummet.” .
The results mark the company’s heaviest quarter yet operation hole recorded, Bloomberg News reported, and for the first time since July-September 2012.
“With uncertainties still lingering, we will continue to reduce investment and costs, and try to mitigate the impact of the downturn by prioritizing markets with high growth potential,” the company said. said in a statement.
“SK Hynix will stay with the decision announced in October to more than halve the volume investment compared to 19 trillion won in 2022,” it added.
South Korean chipmakers – led by giant Samsung Electronics – have posted record profits in recent years as the prices of their products have skyrocketed but the global economic downturn dealt a blow to memory chip sales.
According to technology research firm Gartner, global memory chip sales fell 10% last year as electronics makers “started to deplete the memory stock they were holding in the face of stronger demand.” “.
Hynix’s results come a day after Samsung Electronics said fourth-quarter operating profit fell nearly 70%, the biggest drop in more than eight years.
On the contrary, Samsung Electronic said it will not cut investments this year, adding that despite the unfavorable market conditions, this is a “great opportunity for us to prepare for the future”. “.
Despite a “deeper industry downturn” in the first half of 2023, SK Hynix forecasts market conditions will improve by year-end, adding that demand is expected to pick up as companies Global tech companies looking to adopt more Memory chips at low price.
Shares of Hynix rose nearly 1% in Seoul on Wednesday.
© 2023 AFP
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