SK Hynix will significantly reduce capital expenditure next year by 70-80%. SK Hynix is also the memory manufacturer with the largest reported capital expenditure revision.
TrendForce's data shows that in the second quarter of this year, SK Hynix's global NAND chip market share was 19.9%, Kioxia's 15.6%, and Micron's 12.6%. The three companies together surpassed Samsung's 33%.
In terms of DRAM, in the first quarter of this year, SK Hynix had a market share of 27.3%, and Micron had a market share of 23.8%. The combined market share of the two companies approached Samsung's 43.5%.
Korean media pointed out that SK Hynix used to decide the equipment investment plan for the next year from August to September every year. However, due to factors such as the epidemic situation and equipment delivery time, SK Hynix placed an order in advance this year, and in April, it discussed with the supplier about equipment investment for next year. Due to the oversupply of chips, the equipment manufacturers began to cut orders at the end of September.
Previously, Micron also slowed down production and cut capital expenditures due to declining demand. It is expected that capital expenditures in fiscal 2023 will be reduced by about $8 billion (about 56.72 billion yuan), or at least 30%, and fab equipment spending will be reduced by 50%. ; Kioxia subsequently announced that it will reduce the production capacity of its flash memory factories in Yokkaichi and Kitakami, Japan by nearly 30% from October.
TrendForce believes that the DRAM oversupply ratio for the whole year of 2023 will be reduced from the previously estimated 11.6% to less than 10%, after the production reduction plans of major OEMs will be far below the historical level of supply growth, which will help to improve rapidly Worsening inventory pressure. The industry believes that with the gradual reduction of production or capital expenditure by major manufacturers, it will be able to accelerate the industrial market situation to get out of the trough.
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