A Quarter to Forget for SK Hynix

Weak demand and falling memory chip prices seriously affected SK Hynix’s results in the final quarter of 2022. South Korean company reported a double-digit decline in revenue and profits loss.

The chipmaker recorded a net loss of KRW3.5 trillion ($1.4 billion) compared with a profit of KRW3.3 trillion in 4Q21. Revenue fell 38% to KRW7.7 trillion. The company stated an operating loss was it's first in ten years. The company stood by a plan to reduce CAPEX by more than 50% from the KRW19 trillion spent in 2022. “With uncertainties still lingering, we will continue to reduce investments and costs, while trying to minimize the impact of the downturn by prioritizing markets with high growth potential,“ the company said in a statement.

It forecast market conditions to improve later this year and expects demand to gradually recover as global tech companies start to adopt more memory chips as prices fall. For the mobile segment, SK Hynix expects lower channel inventory and a reopening in China to drive a recovery in H2. It predicts continued polarization between flagship, low-end, and midrange models.