SK Hynix eventually subtracted… Deferred investment

SK Hynix, which recorded the 'earning shock' in the second quarter, officially announced the start of subtraction of DRAM and NAND flash. Contrary to expectations, the global semiconductor market has been sluggish for a long period of time, and the US-China trade dispute over Japan's export regulations has led to uncertainty. On the 25th, SK Hynix officially formulated a plan to reduce memory and review investments, stating that the second quarter's operating profit was estimated to have been reduced by 89% compared to the same period last year to 63.6 billion won.

First of all, the DRAM memory is to be converted into a production line of CIS (CMOS image sensor), which is showing a recent growth trend, in the DRAM production facility of the M10 plant in Icheon.

Upon completion of the conversion, DRAM production will naturally decrease from the fourth quarter. NAND Flash, which set out to reduce the annual wafer input by 10% compared to the previous year, also decided to cut more than 15% as demand slowed longer than expected. The subtraction range is further expanded. At the same time, the timing of securing additional clean rooms necessary for the expansion of the Cheongju M15 NAND plant, which began operation in the first quarter of this year, will be reviewed, and the time to bring equipment to the Icheon M16 DRAM plant, which is scheduled to be completed in the second half of next year, will be delayed in consideration of market conditions. This means that the future investment plan will be fully reviewed with subtraction.

SK Hynix's subtraction and review of its investment plans interpreted the full-fledged countermeasures in the second half of the year due to unfavorable factors such as signs of prolonged memory market and uncertainty over trade disputes between the US and China and Japan's export restrictions on key semiconductor materials. do.

SK Hynix, after Micron in the US, brought out a subtracted card because it judged that the deterioration in performance due to a slowdown in demand was more severe than expected.

On this day, SK Hynix announced that it recorded sales of 6,452.2 billion won and operating profit of 63.76 billion won in the second quarter. Sales decreased 5% from the previous quarter (6.7727 billion won), and fell sharply 38% from the same period last year (10.37 trillion won).

Sources of article:
https://www.mk.co.kr/news/business/view/2019/07/566437/?&utm_source=newsletter&utm_medium=referral