South Korean chipmaker SK Hynix worries about China future

News Summary

  • SEOUL, South Korea (AP) — South Korean computer chipmaker SK Hynix said Wednesday it might be forced to sell its manufacturing operations in China if a U.S. crackdown on exports of semiconductor technology and manufacturing equipment to China intensifies.
  • SK Hynix may find it difficult to equip its manufacturing line in the eastern Chinese city of Wuxi with the most advanced chipmaking machines, including extreme ultraviolent lithography (EUV) systems, Noh said.
  • Citing an “unprecedented deterioration” in market conditions, SK Hynix said it would cut its investment next year by more than 50% as it anticipates supply will continue to exceed demand for the time being.
  • The country’s operating profit for the three months through September was at 1.65 trillion won ($1.16 billion), compared to 4.17 trillion won ($2.92 billion) during the same period last year.
  • Samsung, the world’s largest provider of memory chips, is widely believed to have received a similar exemption from the U.S. restrictions, although the company has not publicly confirmed it.
  • SK Hynix and other semiconductor makers are also navigating new U.S. restrictions on exports of advanced semiconductors and chipmaking equipment to China.
By KIM TONGHYUNG Associated PressSEOUL, South Korea (AP) South Korean computer chipmaker SK Hynix said Wednesday it might be forced to sell its manufacturing operations in China if a U.S. crackd [+3540 chars]