SK Hynix Predicts A Turnaround In Its Memory Chip Business After Huge Loss : After reporting a record quarterly operating loss on Wednesday, South Korea’s SK Hynix Inc said that output cuts by memory chipmakers will improve market conditions starting in the second half of 2023.
SK Hynix Predicts A Turnaround In Its Memory Chip Business After Huge Loss
According to SK Hynix, the company’s loss increased as a result of the first quarter’s memory chip glut being exacerbated by a slowing global economy, which led to weak demand and declining prices.
On the other hand, “we expect revenue to rebound in the second quarter after bottoming out in the first, driven by a gradual increase in sales volume,” SK Hynix added.
The world’s largest manufacturer of memory chips, fellow countryman Samsung Electronics Co Ltd, announced an unusual output cut earlier this month as prices for semiconductors fell precipitously around the world due to a steep decline in demand.
According to SK Hynix, these reductions will lower inventories throughout the sector and enhance market conditions from the current quarter.
The second-largest memory chip manufacturer in the world recorded an operational loss of 3.4 trillion won ($2.54 billion) in the January-March quarter compared to a profit of 2.9 trillion won in the same period last year.
The result was in line with the 3.4 trillion won operational loss Refinitiv SmartEstimate, which was calculated using projections from 29 analysts and weighted towards those that frequently provide reliable information.
The loss, which follows the 1.9 trillion won loss in the fourth quarter, is the most since SK Group acquired Hynix in 2012 .To 5.1 trillion won, revenue decreased 58% year over year.
Following the company’s announcement of a market recovery, shares of SK Hynix were up 2.1% against a 0.2% fall in the overall market.
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