South Korea-based SK Hynix dropped into the red in the final quarter of 2022, as weak demand and falling memory chip prices resulted in a double-digit decline in revenue.
The chipmaker recorded a net loss of KRW3.5 trillion ($1.4 billion) compared with a profit of KRW3.3 trillion in Q4 2021. Revenue fell 38 per cent to KRW7.7 trillion.
It stated an operating loss was its first in ten years. The company stood by a plan to reduce capex by more than 50 per cent from the KRW19 trillion spent in 2022.
“With uncertainties still lingering, we will continue to reduce investments and costs, while trying to minimise the impact of the downturn by prioritising markets with high growth potential.”
It forecast market conditions to improve later this and 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 polarisation between flagship, and low-end and midrange models.
Rival Samsung’s Q4 revenue fell 8.2 per cent to KRW70.5 trillion due to a weak performance of its memory and mobile device businesses.