SK Hynix Considers 25% Cut in Capital Expenditure Next Year...Taking Semiconductor Demand into Account

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] SK Hynix is considering reducing its capital expenditure by about 25% next year to around 16 trillion won, taking into account the decline in demand for electronic devices, Bloomberg reported on the 15th, citing multiple sources.

Bloomberg stated, "SK Hynix is reassessing its expected demand. Due to increasing uncertainty over declining semiconductor demand across all sectors, from smartphones to servers, the company has reconsidered expanding production capacity next year." It added that SK Hynix is maintaining its plan to spend 21 trillion won in capital expenditure this year to expand production capacity for its core products, memory semiconductors DRAM and NAND flash.

Bloomberg noted that SK Hynix's reduction in investment scale comes amid warnings from global tech companies about macroeconomic risks related to interest rate hikes, and sources said that SK Hynix has not yet made a final decision.

SK Hynix responded by stating, "This is still under review and no plan has been finalized."

In the semiconductor industry, messages about potentially reducing capital expenditure have been emerging recently based on concerns over declining demand. US memory semiconductor company Micron announced earlier this month that it would slow the pace of supply expansion next year and utilize existing inventory to match market demand. Taiwanese foundry company TSMC mentioned the day before that it could reduce next year's capital expenditure by up to 9% compared to initial expectations.

This content was produced with the assistance of AI translation services.