SK Hynix considers 25% cut in 2023 capex to $12.2 billion

 Sources revealed that due to the lower-than-expected demand for end products, SK Hynix, the world's second-largest memory chip maker, is considering cutting capital expenditures in 2023 by about 25%. SK Hynix is ​​considering reducing its capital expenditure in 2023 to 16 trillion won, or about $12.2 billion.

SK Hynix is ​​pushing ahead with their NAND flash and DRAM capacity expansion plans, which will invest about 21 trillion won this year, but rising uncertainty over a slump in market demand has forced them to reconsider plans for next year, sources said.

The sources also revealed that concerns over a decline in chip demand, which spans everything from smartphones to servers, exceeded SK Hynix's expectations.

However, foreign media also mentioned in the report that SK Hynix’s reduction of capital expenditure in 2023 is only a source of information. SK Hynix has not yet made a final decision on its capacity expansion plan, so whether its capital expenditure next year will be Cut, there is still variable.

In terms of declining demand for memory chips, data from research institutes shows that DRAM sales, after hitting a new 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. As the second largest supplier, SK Hynix's sales in the first quarter fell to US$6.56 billion, a decrease of US$870 million from the previous quarter, and its market share dropped from 30.1% to 27.1%.

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