Operating profit declined to 1.7 trillion won ($1.7 billion; US$1.2 billion) in the three months ended September, Hynix said on Wednesday, missing analyst estimates of a 2.5 trillion won profit. Revenue was 11 trillion won, missing the estimated 12.2 trillion won.
South Korean chipmaker SK Hynix Inc. said it will cut its capital expenditure for next year by at least half after reporting a 60% decline in third-quarter profit as memory chip demand plunged.
Hynix’s dramatic cut affirms pessimism about electronics demand in the face of a potential recession as well as uncertainty over Washington’s campaign to smother China’s tech industry. The US curbs on access to advanced chips could curtail production at Hynix and other chipmakers’ factories in China, adding to downbeat forecasts that have come from other chip suppliers like Micron Technology Inc. and Texas Instruments Inc.
