On July 25th, SK hynix announced its second-quarter earnings report, which showed a 38% annual revenue reduction to 6.5 trillion won, and a net profit of 89% from the same period last year to 638 billion won (about 541.9 million US dollars). It also dropped 88% from 4.3 trillion won in the same period last year to 537 billion won.

Due to the double impact of memory price lapses and trade disputes between Japan and South Korea, SK Hynix said that the recovery in demand is lower than expected, and the quotation is also deeper than expected, so it will flexibly adjust production and investment plans to meet challenging challenges. Market environment.

SK Hynix further pointed out that the investment in Ming (2020) will be significantly lower than this year, DRAM production capacity will also be reduced from the fourth quarter of this year, and the decline in NAND flash memory chip investment will be adjusted from the previous 10% to 15%, the expansion time of two Korean fabs will be reconsidered.

As the oversupply situation continues, memory prices have been falling since the end of last year, but spot prices for DRAM and NAND Flash have climbed in recent weeks, mainly due to the impact of trade war between Japan and South Korea. This may balance supply and demand in the short term.