South Korea's SK Hynix recently released its earnings report. In the Q2 quarter, its revenue was 6.45 trillion won, down 38% year-on-year. Its operating profit was only 637.6 billion won, a plunging 89% year-on-year, and its net profit was only 537 billion won, or about 460 million. It plunged 88% year-on-year, setting a record low in three years. SK hynix said it will aggressively cut back on 3DNAND wafer capacity ahead of schedule earlier this year and rethink plans to assemble its M15 and M16 fabs to reduce corporate capital expenditures. Earlier this year, SK had planned to reduce 3DNAND wafer production by 10%. However, this week's latest plan has been adjusted to reduce production by 15%.

In the second quarter of 2019, SK hynix's NAND flash shipments increased by 40% quarter-on-quarter, mainly due to the company's increased production of 72-layer 3DNAND. At the same time, however, the average price of 3DNAND fell by 25%, causing the company's profits to plummet, which is the main reason why SK hynix decided to cut production.

After the expansion of SK hynix, Samsung, Micron and other companies, the NAND flash memory market is expected to reach a balance at the end of this year - the price of NAND flash memory will bottom out for consumers, and the price of NAND flash memory is no longer for manufacturers. It fell.

SK hynix is ​​responsible for NAND marketing. Kim Jong-tai said: “The inventory of corporate customers is the biggest cause of imbalance between supply and demand. From the third quarter onwards, customers’ inventory will be quickly consumed and prices will soon return to stability”, “ It is expected that supply and demand and price stability will continue in the fourth quarter." He said that "we will officially start selling the highest level of 128-level NAND flash memory from the second half of next year."