SK Hynix’s chief marketing officer, Kevin Noh, raised those concerns during a conference call after the company reported its operating profit dropped 60% in the last quarter from 2021, a decline it blamed on a deteriorating business environment.
Global inflation amplified by Russia’s war on Ukraine and rising interest rates imposed by central banks to counter surging prices have slowed consumer spending on the kinds of high-tech products requiring computer chips. SK Hynix and other semiconductor makers are also navigating new U.S. restrictions on exports of advanced semiconductors and chipmaking equipment to China. Such limits were in part imposed to prevent use of American advanced technology in China’s military development.
SK Hynix said this month that the U.S. Department of Commerce granted the company a one-year exemption from such requirements, allowing it to provide equipment and other supplies to its Chinese factories making memory chips.
Other major chip and chip-manufacturing equipment makers like Samsung and Taiwan’s TSMC are thought to have also gotten exemptions.
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