SK Hynix is the world’s second largest memory chip maker, so our quarterly earnings reports constantly analyze industry trends. Unfortunately for SK Hynix, Q4 2022 Results It reflects the downward spiral across the PC industry in the second half of 2022.
The South Korean company posted an operating loss for the first time in over a decade (dating back to Q3 2012). The company’s weak quarter was exacerbated by lower demand for memory chips and a significant drop in memory prices in the fourth quarter. As a result, the company lost 7.699 trillion won ($6.267 billion) in revenue, 1.701 trillion won ($1.384 billion) in operating losses and 3.524 trillion won ($2.868 billion) in operating losses. reported a net loss of Operating profit plummeted 44% for the full year, even though revenue increased his 4% compared to 2021.
“As uncertainty remains, we will continue to reduce investments and costs while minimizing the impact of the recession by prioritizing markets with high growth potential,” the company said in a press release. I’m here.
SK Hynix agrees with industry analysts that memory chip inventories will peak in the first half of 2023. This is because key players cut production and investment to meet customer demand. However, the company expects “market conditions to gradually improve towards the second half of the year…with the world’s best technology for DDR5 for data centers and 176-layer NAND flash-based enterprise SSDs, a rapid recovery is expected.” I will,” he added. when the market bottoms out. ”
There were already signs that SK Hynix’s fourth quarter was going roughly. In October 2022, the company announced that it would halve capital expenditures (CapEx). The move is understandable given the company’s Q3 2022 operating profit fell 60% year-over-year and his 44% decline overall reported today. However, despite the CapEx reduction, SK Hynix remains committed to investing in “mainstream products” including his DDR5/LPDDR5 and HBM3.
SK Hynix has not elaborated on how the investment crisis will affect its $11 billion fab in South Korea, which is currently under construction. The fab was originally scheduled to open in 2025, but that could be delayed if the rebound the company is hoping for doesn’t happen in the second half of 2023.
