South Korea-based SK Hynix warned demand for memory chips would decline in the second half of 2022, as an expected drop in shipments to smartphone and PC makers prompted the chipmaker to review its capex plan for 2023.

In its Q2 earning release, SK Hynix stated it would monitor inventory levels carefully in the second half, but forecast demand from the smartphone, PC and data centre segments to be lower than initially predicted.

“Although the uncertainty of the business environment has increased recently, we are confident in the long-term growth potential of the memory industry,” president and CMO Kevin Noh stated.

The company noted it booked a strong performance in Q2 despite a difficult business environment with inflation rising, a prolonged conflict between Russia and Ukraine, and Covid-19  (coronavirus) lockdowns in parts of China.

While DRAM product prices fell, overall sales increased as NAND prices rose.

Net profit grew 45 per cent year-on-year to KRW2.9 trillion ($2.2 billion), with revenue hitting a quarterly record of KRW13.8 trillion, up 34 per cent.

Operating margin improved from 26 per cent to 30 per cent.